Securing A Loan To Purchase a FedEx Route
Buying a FedEx route might be the investment of a lifetime, but you can’t get it done if you don’t secure the financing. When it comes to your options of buying your own route, there are definitely options that you have access to – mainly in the form of loans.
Here is everything you need to know about FedEx loans, and securing one to get your route and to get your new business off the ground. There are essentially two types of loans at your disposal, which include:
- Small Business Association Loans
- Conventional Loans
Small Business Association Loans
A small business association (SBA) loan will often offer longer terms, and lower monthly payments, which should help you when it comes to first operating your route (and the initial start-up costs of getting your business running). They are also a loan type that has a lot of experience helping folks buy FedEx routes, so they are well-versed in what you need to succeed.
On the other hand, because they have less of a need for liquid assets, SBA loans can have higher fees associated with helping to purchase your loan. Because SBAs vary from one to the other, while some may have experience helping people secure funding for FedEx routes, others may not, which can lead to a long, drawn-out process that you may want to avoid.
If you are qualified, a conventional loan should be easier to secure for your investment. These loans also tend to have lower fees and rates, and can often be secured through your personal relationships (because of things like an existing mortgage or a car loan). In this way, a conventional loan may be the best to help secure the money you need for your FedEx route.
The flip side of the loan is that conventional loans typically have shorter payment terms, and higher monthly payments, which may end up placing undue pressure on you to perform. You are also going to have to have been a good saver, as many of these loans require 20-25% as a down payment. If you don’t have that, you might just be plain out of luck.
FedEx Loans and You
If you want to secure a loan to purchase your very first FedEx route, you are definitely going to need a very strong financial record. These types of institutions, alternative lenders included, want to know that the money is going to be paid back (which is more difficult due to a lack of liquid assets).
That said, you definitely do have options available to you. Instead, it comes down to identifying the right opportunities, making the right connections, and perhaps even biding your time until the investment is right for your bank account (and not just for your dreams).