There is no route to success other than hard work and determination. However, when your success depends on actual routes, you may need financing to purchase additional fedex routes.
Sometimes, all you need to do is take a new route in order to see new options and possibilities. Getting financing can help you buy those new routes and expand your business horizons.
The Importance of Financing for your Fedex Ground Transportation Business
Without financing, growing your business is difficult. Today, with all the new laws and changes about FedEx route ownership, you must grow your business, merge with another FedEx contractor or sell your routes to someone else. This requires the right funding.
When you are buying additional routes, there are other costs to factor in along with the cost. You must also cover maintenance, fuel and driver training.
The truth is that it’s almost impossible to get a loan or a line of credit from a bank. Traditional banks typically don’t understand the FedEx model so they consider FedEx owner operators to be too much of a risk. As a result, they deny the application.
Even if you can get a banker to listen to you, banks have very strict criteria for small business loans. You must have an excellent credit score and demonstrate positive cash flow over several years. Also, they expect you to have tons of collateral.
Where to Turn for Financing
Many FedEx route owners are using cash advances or lines of credit from Financing Solutions (www.financingsolutionsnow.com) to help them with the down payment of new routes. These costs usually run around $100,000-$150,000.
Financing Solutions has helped hundreds of FedEx independent contractors purchase additional routes, buy used trucks for sale and expand their operations. Over the last few years FedEx route purchases from existing FedEx ground owners has been important.
Most importantly, you can get a line of credit right now. Financing Solutions offers a quick and easy application with fast approvals. In most cases, you can have the money you need in less than 48 hours.
Important Information about Financing and Additional Routes
Buying additional FedEx ground routes is a smart way to grow your business. Still, there are hidden costs you need to consider before deciding if this is right for you.
Numerous expenses come with being a FedEx ground owner operator. You must pay for uniforms, decals for vehicles and FedEx scanners and software. Truck maintenance is another expense that can take a huge chunk of your profits.
Since you can’t operate multiple routes without extra drivers, this is also a major component. For example, you may want to provide bonuses to encourage better performance. Some owners also offer health and retirement benefits to entice the best employees and foster loyal relationships.
The most important fact to know about financing is that you can get it easier from Financing Solutions. They will help you finance FedEx routes for continued success.
Financing Solutions LLC is not endorsed by and is not recommended by Federal Express Corporation and Fedex Ground. Financing Solutions LLC is not sponsored by, is not approved by, is not associated with, and has no connection whatsoever with Federal Express Corporation or Fedex Ground.
