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How to Buy a FedEx Route

Most people who use the Federal Express ground delivery service or see FedEx trucks don’t know how Fedex Home delivery really works. They don’t realize that the drivers work for a company that bought the rights to a FedEx routeYou can get financing to buy a FedEx route from Payroll Financing Solutions. or that those trucks are actually being driven by independent contractors.

Like any entrepreneur, these businesses have ups and downs in cash flow where a line of credit could really help. Financing Solutions is the leading provider of Lines of Credit to EXISTING FedEx route owners but we also have some experience in understanding the Fedex Ground Owners.

Who Offers Funding to Buy a FedEx Route?

As of the writing of this article, there is no one company that provides funding so that someone who is looking to purchase a FedEx route can get financing.

There often are two options for purchasing Fedex Routes that are used most often by buyers.

The first financing option is that some existing Fedex Route Owners might consider some form of owner financing where the buyer will put down a large downpayment and the remainder will be paid out monthly over a period of time. Keep in mind that in order to make it worth the Fedex Route Owners time, you might have to pay more than the asking price due to the risk the existing owner is taking by self-financing.

The second financing option is that the buyer will get a bank term loan. Keep in mind that all bank loans will require some form of collateral (i.e. Your home) to back up the term loan and will also require a solid personal credit score (680 or higher).

Financing companies are reluctant to finance new Fedex route purchases because their is no collateral in a Fedex Ground business. If for some reason the Fedex Ground company fails to perform Fedex Corporation has the right to assign the rights of their routes to another business.

What You Should Know Before You Buy a FedEx Route

Buying a Fedex Ground business is just like buying any other business. You are going to need to ask a lot of questions but some of the questions that are asked might be more specific with a Fedex Ground business.

  • Here are some good starter questions to ask an existing Fedex Ground Business Owner:
  • How many Fedex routes do you have now?
  • How many Fedex deliveries are you doing now?
  • How many drivers do you have?
  • What do you do if a driver is out sick?
  • How did you get into this business?
  • How has the business changed over the years?
  • Have you had any citations from Fedex?
  • Why are you looking to sell?
  • Where do you think Fedex is headed in regards to Fedex Groun
  • Are you willing to offer owner financing?
  • What type of qualification process do you think Fedex Corp will go through on me to allow me to purchase your business?
  • What type of cash reserves will I need for the business?
  • Can I have a recent business tax return and balance sheet to review?
  • Do you have an operations manager?
  • What is your day like at work?

Financing Solutions Line of Credit Program For Fedex Ground Companies

Financing Solutions, an A+ and 5 Stars rated BBB company, has been providing small business lines of credit since 2012. Fedex Ground companies have been using Financing Solution’s credit line because it’s is easy, fast, and inexpensive.

In order to qualify, you must be already a Fedex Route Owner and you must have a 630 or greater person credit score. There is no collateral or personal guarantees required and the application takes 2-minutes to get an offer letter.

The Line of Credit costs nothing to set up, noting until used and is inexpensive when needed. The majority of Fedex Ground Owners use the credit line for:

  • Emergency maintenance of trucks
  • Purchasing used trucks
  • Hiring additional employees
  • Getting personal money out of business
  • Putting down payments on new route
  • Cash back up plan for emergencies or opportunities

If you would like to apply for a line of credit or to get additional information, click here.

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. 

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