empty rural highway with moutains

Financing

KR Capital works with a network of lenders who specialize in providing loans for buyers seeking FedEx route financing. These loans are typically in the form of an SBA loan or conventional loan.
5.5%
Current Prime Rate
8.25%
Expected SBA Loan Rate
Updated 01/24/2019

We Get the Deal Done


When marketing a set of FedEx1  routes, it is helpful to open the door to as many buyers as possible. Often buyers will be very interested to proceed forward on the deal, but may be unable or unwilling to purchase the routes with their own cash. Having readymade lending options available allows us to work with these buyers and get the deal done.

KR Capital has an intimate knowledge of the financing process and knows what both buyers and sellers can expect throughout. We work with our clients to proactively prepare the information a lender will ultimately need. This allows us to “pre-qualify” our sellers for financing before going to market.

In order to successfully finance a set of FedEx routes, the lender will request and/or require certain information from both the buyer and seller.

Buyer Information

  • Personal Financial Statement (SBA form 413) [download]
  • SBA Form 1919 [download]
  • Individual Certification [download]
  • Borrower Certification [download]
  • 3 years personal and affiliate tax returns
  • Resume
  • Outline of total project costs (purchase price, working capital, any additional equipment)
  • Description of who will be running the daily operations of the business (buyer, manager, etc.)

Seller Information

  • 3 years of corporate tax returns (or as much as available)
  • Current year-to-date profit and loss statement and balance sheet (same for prior year over same period)
  • Terminal Address
  • Fleet List
  • Description of who is currently running the daily operations of the business (seller, manager, etc.)

Loan Considerations

Once the loan is evaluated by the lender, they will typically issue a “pre-approval” or “discussion” letter outlining the terms of the proposed loan. Lenders consider many components as part of the loan package.

Down Payment

SBA loans will generally require a buyer to make a down payment of 10-20% of the total loan value. This number can vary depending on the strength of the guarantor, amount of seller financing negotiated, etc.

Loan Terms

An SBA loan is traditionally amortized over a 10-year period. This loan will accrue interest at a rate of Prime + 2.75% and is adjusted quarterly.

Seller Financing

If seller financing is involved, the seller note will similarly be required to follow this same 10-year amortization period. In certain circumstances, a balloon payment on the seller note can be made after a certain period of time (typically 3-5 years) so that the seller does not need to wait the full 10 years to collect on the seller note.

Collateral

In general, all business assets of the seller must be pledged in order to secure the loan. In addition, personally held real estate will likely need to be pledged up until the loan is fully secured on a discounted basis. Note: if the loan is not fully secured, that does NOT necessarily make the loan ineligible. Other collateral may be required on a deal-specific basis.

Financing Form

Interested in financing? Please fill out the form for individualized information and follow-up.

Buyer Info Request
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