"Funerals are stressful enough without having to find a considerable sum of money at short notice – money that the average family simply doesn’t have available. We are delighted that families can now spread the cost over a more manageable period"
London (PRWEB UK) 22 August 2017
- Funerals have more than doubled in price in little over a decade
- The average funeral costs £3,879 whereas the average family only has £3,134 in total savings
- Funeral directors must lend money to customers they have never met before, for weeks, with no guarantee that they will get paid
- Funeralbooker have launched the first nationwide interest-free financing solution to solve the problem for both families and funeral directors
Funeralbooker have launched the first nationwide interest-free financing product for funerals, meaning that the recently bereaved can now easily access money to cover funeral costs. This presents a remedy to the huge problem of funeral affordability.
The average cost of a funeral nationally is now £3,897. Finding the money to pay for a funeral is particularly difficult when the average UK household only has £3,134 in savings and one in four UK families have less than £95. These savings may also be illiquid or have an interest penalty for accessing them.
Frequently families may often be able to reclaim the cost of the funeral out of probate – the money received from the deceased’s estate; however, on average probate takes between six to nine months to complete. This is where Funeralbooker have stepped in to offer families an interest-free solution for up to 12 months.
James Dunn, co-founder of Funeralbooker, says: “Funerals are stressful enough without having to find a considerable sum of money at short notice – money that the average family simply doesn’t have available. We are delighted that families who use our website to engage a funeral director can now spread the cost over a more manageable period.”
For funeral directors, 65% of whom are small, independent family businesses , this solution tackles the dual problem of cash flow and ‘bad debt’. Historically, funeral directors used to know everyone in the village and could assess if a customer was able to afford their services or not.
Times and demographics have changed: people often no longer stay in the same small village or know their local funeral director; however, these small family businesses are still expected to effectively lend large sums of money to people who they have never met before.
Directors have to pay out third party fees for burial and cremation (disbursements) up to 2 weeks before the funeral, and often only receive payment from the customer a month after the funeral. This means they are out of pocket for 6 weeks, a huge challenge to a small business’s cashflow. Now, when customers pay for a funeral using Funeralbooker’s financing option, funeral directors get paid in full, up front.
James Dunn, co-founder of Funeralbooker, says: “We have always championed independent funeral directors and it’s fantastic to take away some of the stress of running a small business. We get them paid in full, upfront and allowing them to focus on where they truly excel – looking after families and creating lasting memories.”
Following bereavement, customers can use Funeralbooker to begin the process of arranging the funeral and getting help to pay for it. They can compare like-for-like for funeral director quotes from the comfort of home and choose the one that is right for them. If finance is required, an application is completed over the phone with one of the Funeralbooker team. This typically takes under 15 minutes with an instant decision available. On approval, the money is sent directly to the funeral director ahead of the funeral, reducing stress and work for the family.
Funeral Director and Customer quotes:
Adrian Pink, at Town and Country Funeral Directors, says: “It was very quick, very efficient. Everybody knew what was happening and it provided a big help for a family. They simply didn’t have 50% as an upfront payment; so many funeral directors wouldn’t have been able to take them on as a customer.
People want to give a nice, respectful funeral when they’ve lost someone and some go to credit cards, which are not a great idea. This is much better because it’s cheaper, it’s clear and people know what they’re taking on in terms of monthly cost.”
Paul and Denise Weelings, Woking (customers), say: “We didn’t have the money in one go, so this has been a God-send. It made an enormous difference as otherwise we would have had to wait for probate. It relieves some of the pressure and it’s reassuring to know the monthly cost up front and have the flexibility of being able to pay it back early. We’re more than impressed with the funeral - very professional and respectful - and the finance just played its part in making everything easier.”
James Dunn: Tel 07889 284074, email james(at)funeralbooker.com or press(at)funeralbooker.com
Notes to editors:
1. Please note that our name is Funeralbooker, not Funeral Booker or Funeralbookers
2. Links very welcome - please link to https://funeralbooker.com/funeral-finance
3. Sep 2016 Sunlife report https://www.sunlife.co.uk/blogs-and-features/how-much-does-a-funeral-cost-in-the-uk-today_/
4. Feb 2017 Aviva report https://www.aviva.com/media/news/item/uk-inequality-worsens-as-savings-gap-grows-25-and-homeownership-levels-fall-for-low-income-families-17740/
Aug 2017 Funeralbooker data https://funeralbooker.com/blog/2017-cremation-burial-cost-index/
Funeralbooker is an independent and impartial funeral booking service, designed to bring greater transparency to the funeral market. Our service is free and easy to use and helps consumers to find the right funeral director for their needs. We help to provide consumers with more choice, better service and value for money.