POS Financing vs In-House Payment Plans for Funeral Services: Which Is Best for Your Funeral Home?

Last updated 08/12/2025 by

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Summary:

Funeral homes often face the choice between offering in-house payment plans or partnering with a point-of-sale (POS) financing provider. While in-house plans give you full control, POS financing removes credit risk, accelerates cash flow, and eliminates administrative burdens.

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Understanding the Two Options

In-house payment plans are arrangements you manage directly with families. You set the terms, collect payments, and handle any late or missed payments.
POS financing involves partnering with a platform like SuperMoney, which connects families to multiple lenders who handle repayment while you receive full payment upfront.

Industry Context: Why This Matters

According to the National Funeral Directors Association, the median cost of a funeral with burial is $7,848, while cremations average $6,971. Many families cannot cover these expenses in one payment. The financing option you choose directly impacts:

Your approval rates for at-need arrangements
How quickly you receive payment
Your exposure to credit risk

POS Financing vs In-House Payment Plans: Feature Comparison

Feature	In-House Payment Plan	POS Financing with SuperMoney
Upfront Payment to Funeral Home	No	Yes
Risk of Non-Payment	High — you assume all credit risk	None — lender assumes the risk
Administrative Burden	Manual billing, tracking, and collections	Minimal — handled by financing provider
Approval Process	Slow — depends on your internal review	Fast — often instant, with multiple lender offers
Customer Accessibility	Limited to your criteria	Loans up to $100,000, all credit types

Real-World Example: Traditional Funeral Service

A family selects a $7,848 funeral package:

In-House Payment Plan: You might collect a $3,000 deposit and receive the balance in monthly payments over 12 months — waiting a year to be paid in full.
POS Financing: The lender pays you the full $7,848 within 1–2 business days, and the family makes affordable monthly payments directly to the lender.

Overcoming the “Control” Objection

Some funeral home owners believe in-house plans give them more control. In reality, control comes with cost:

You are responsible for chasing late payments.
Your cash flow is tied up for months.
Defaults directly affect your bottom line.

POS financing shifts the risk and workload to a third-party lender while you maintain a positive relationship with the family.

ROI Snapshot: Why POS Financing Often Wins

Based on aggregated data from funeral service providers:

Metric	In-House Plans	POS Financing
Average Close Rate	65%	85%
Average Service Value	$6,500	$8,200
Days to Payment	30–90	1–2
Risk of Bad Debt	High	None

These gains reflect the combined impact of faster approvals, reduced risk, and increased spending on upgraded services.

What next

In-house payment plans can work for small balances or long-standing client relationships, but for most funeral homes, POS financing delivers faster cash flow, reduced risk, and higher sales.
➡️ Explore SuperMoney’s Funeral Service Financing Solutions to see how you can implement this in as little as 1–2 days.

Explore More POS Financing Insights

POS Financing vs In-House Payment Plans – See why outsourcing financing beats managing it yourself.
Funeral Service Financing Solutions – Learn how POS financing supports both your business and the families you serve.
Client Financing Solutions for Funeral Services – Affordable Payment Options for Families
How to Offer Financing as a Funeral Service Provider – Increase Sales & Support Families

FAQs

Can I offer both in-house and POS financing?

Yes — some funeral homes keep in-house plans for small amounts but use POS financing for larger balances.

Will POS financing hurt my relationship with families?

No — lenders manage repayment professionally, allowing you to focus on service, not collections.

What credit scores can qualify for POS financing?

With SuperMoney, all credit types are considered, increasing approval rates.

Does POS financing cost my funeral home anything?

No — SuperMoney’s solution is free for providers.

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