How Do I Verify the Revenue Received from FedEx?
For those interested in owning and operating a small business, buying FedEx routes is an excellent opportunity to build a profitable enterprise in a reliable industry. In addition to the freedom and flexibility of being your own boss, becoming a FedEx contractor means you can expect to be paid on time, every week, for deliveries made the previous week.
But how do contractors verify that the money coming in is an accurate reflection of the work performed? Good question. And we have a simple answer.
The revenue received by FedEx is actually extremely easy to verify and calculate.
This is true for a couple of reasons.
First, each payment a contractor receives is accompanied by a weekly settlement statement that details all of the activity and calculations supporting the total payment amount due to the contractor. (For additional information about how FedEx calculates contractor payments, visit our blog, How Are FedEx Contractors Paid?)
Second, FedEx also issues a 1099 form at the end of the year, which validates the yearly revenue received by the contractor. As a FedEx route owner, it is important to keep all of your payment paperwork well organized and easily accessible in case you need to verify something quickly.
Do contractors have to wait for paper checks in the mail?
No. Payment is executed by direct deposit and generally very reliable.
Revenue for routes is typically considered to be consistent from one week to the next. However, payment can be impacted by peak delivery periods as well as dips in shipping activity. Contractors will want to plan accordingly to ensure they are managing logistics efficiently during seasonal changes.
Another big benefit? FedEx contractors get paid the first week they are in business. This is a big selling point, since most individuals starting a new job or business endeavor cannot afford to wait weeks for their first payment.
Visit the KR Capital blog and our FAQs page for additional information.
If you are thinking about purchasing routes and becoming a FedEx contractor, we know you have a lot to consider. The team at KR Capital can help guide you through the FedEx approval process and even offer assistance with financing the purchase of your routes. As the nation’s leading FedEx brokerage firm, we have the experience and the expertise needed to help you realize the dream of owning your own FedEx route business. Contact us to get started today.