A UK funeral firm has collapsed into administration, leaving behind loans still to be repaid by grieving families. Funeral Safe was established in 2016 and became authorised by the Financial Conduct Authority in 2017.

However, after entering administration on May 6, it is now closed to new lending and no longer accepting new applications.

This follows the closure of many UK service-sector companies this year alone.

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After being in business for a decade, the company is now left to ensure that families with loans of up to £10,000 receive clarity and know their next steps.

Funeral Safe formerly offered loans between the range of £500 to £10,000. However, those who have a loan with Funeral Safe will need to continue their existing repayment arrangements as usual. Monthly payments will continue to be collected on the same day initially agreed upon each month.

The joint administrators from Kroll have stated that those who had an application approved before the administration date will still be funded.

Its website states: "If you already have a Funeral Safe loan, your existing repayment arrangements continue unchanged at present. Monthly payments will continue to be collected on the same payment day each month.

"If you applied for finance before the administration and your application had been approved, your loan will still be funded in the ordinary course. There may, however, be a slight delay in payment of invoices."

Geoff Bouchier and Benjamin Wiles of Kroll Advisory Limited have been appointed as Joint Administrators of Funeral Safe.

People looking for alternative ways to cover costs now that Funeral Safe is closed can consider the Government's Funeral Expenses Payment. This can provide up to £1,000 for various expenses, including burial or cremation fees.

Funeral Safe has been contacted for comment.