Premier Route Consulting

FedEx Route Brokers, Selling FedEx Routes, FedEx Routes for Sale

Financing a FedEx Route Business

With the increasing complexities of the FedEx Ground business model, it is more important than ever for buyers and sellers to understand financing options when acquiring P&D and linehaul route businesses.

Traditional Bank Financing

In the past, traditional banks were not as open to lending to FedEx route operations mainly due to a lack of industry knowledge and certain lending restrictions, but times have changed. Recently, lenders have begun opening their doors to our industry, especially in the form of SBA financing. The two most used loan products are the SBA Standard 7(a) and SBA Express loans.

SBA Financing Challenges for FedEx Contractors

Financing FedEx routes using an SBA loan is a great option but can also come with some challenges. Regardless of SBA eligibility, few banks still fully understand the FedEx business model and will typically pass on lending opportunities without further understanding. It is imperative to partner with a lender that is knowledgeable and open to financing FedEx route businesses. We can help you navigate this discovery process as we are well connected with qualified lenders interested in providing financing to businesses within our industry.

Another challenge relates to the financial documents required to process an SBA loan. Both buyer and seller must be open and available to submit the documents needed to facilitate the lending process. It is important for both parties to keep this in mind before approaching a lender. Detailed personal financial data will be required of incoming buyers including a personal financial statement, personal tax returns, and bank statements showing necessary capital requirements. For sellers, accurate financials will be needed to verify information and determine the market value of the business.

Creative Financing

In some cases, traditional small business lending may be more difficult to obtain due to a buyer’s financial position, seller preferences, or time limitations. In these instances, we recommend exploring alternative sources for financing. These options may provide solutions when more traditional lending options are not available.

Some examples of creative financing include:

  • Equipment Financing
  • Seller Financing
  • Assumable Debt
  • Business and Personal Lines of Credit
  • Credit Cards
  • Term Loans
  • Online Lenders
  • Partnerships
  • Family/Friends

Next Steps Towards Securing a Loan For FedEx Routes

Once a buyer’s financing method has been chosen and all necessary documents have been received, the next step is to qualify the prospective buyer and FedEx route business. At Premier Route Consulting, we work closely with lenders to ensure they are fully equipped with key financial information and operational data to help make qualification decisions. Throughout the entire process, we maintain close communication between our buyers, sellers, and lenders.

Contact Us for more information about SBA financing and other lending options for FedEx route sales.