Finding financing to help run a business takes time to research and comparison shop to make sure you’re making smart financial decisions. It may take even longer for owners of FedEx contractor businesses (Fedex ISO) since the lending choices aren’t typically as extensive as for types of businesses. But we’re here to help. Here are some financing options to help you find the funding you need, including bank loans, SBA loans, and a FedEx line of credit for your FedEx contractor business.

Does Anyone Offer Financing for My FedEx Contractor Business?

FedEx contractors are separate entities from the FedEx global shipping company, so when it’s time to look for FedEx financing, it’s up to the contractors to find their own lenders. Whether you need a FedEx long haul loan or a FedEx route loan, your best choices come down to how much money you need and how quickly you need it.

FedEx Loans from a Bank

Typically, bank loans are sought when a business owner needs to borrow a large amount of cash for a big project and wants more time to pay the loan back. But bank loans have a lengthy application process, and, in most cases, the business owner needs collateral to back up the FedEx loan in case of default. Bank lenders may require a business plan to show what the funds will be used for and how the loan will be repaid. The business likely needs to provide years of tax returns, balance sheets to show steady cash flow, and an excellent credit score.

Unlike a FedEx line of credit, bank loans are term loans (also called installment loans). Term loans are given as a lump sum, and borrowers make monthly payments until the loan is repaid. The terms of the loan determine the amount of time the loan is spread out over; however, long-term loans are usually for five to seven years. Short-term bank loans are for less money and are repaid quicker—six to 12 months. Interest rates vary by lender and by the financial health of the borrower and can be fixed or variable. Because the application and vetting process takes significant time, a bank loan is not a good solution if you need FedEx financing in a hurry.

FedEx Loans from the Small Business Administration (SBA)

SBA guarantees several kinds of loans through their approved lenders, although the number of steps to get approved may seem overwhelming. The SBA requires lenders to extensively vet their borrowers, which could lead to an extended application process. However, if time is not an issue, you might be able to get an SBA 7(a) loan.

The SBA 7(a) loan can be used for long- and short-term working capital, purchasing equipment and machinery, buying real estate, and business expansion. Be prepared to provide a vast amount of documentation, including an appraised list of collateral, a business plan, and a resume outlining your industry experience.

Start the application process at the SBA Lender Match, where you must identify what the loan is for, how much you need, and other requirements. Then you will be matched to one or more SBA-guaranteed lenders.

FedEx Line of Credit

A business line of credit is a type of short-term funding for companies needing money quickly for various business expenses. The best time to get a business line of credit is before you need it; the same goes for a FedEx ISP line of credit. A FedEx line of credit can be used as an emergency fund you keep on hand to use when needed.

Some uses for a FedEx line of credit include:

  • Putting a down payment on additional routes
  • Unexpected truck repairs
  • Purchasing used trucks
  • Operating expenses
  • Office upgrades
  • Hiring new employees
  • Navigating the seasonality of the business
  • Meeting payroll

Like a business credit card, a FedEx line of credit is a revolving line of credit. In a revolving line of credit agreement, the lender approves a preset lump to be at the borrower’s disposal until the end of the loan term. The borrower can then draw upon the lump sum and repay the amount weekly or monthly until the drawn portion is repaid. Once the withdrawn portion has been repaid, the money is available to use again. A FedEx line of credit differs from a bank loan or SBA loan in that you have more flexibility on repayment in terms of both time and the amount you repay.

The Financing Solutions FedEx Line of Credit

Financing Solutions offers a FedEx line of credit for existing FedEx route owners with an easy application process (it takes less than two minutes to fill out) and requires no collateral or documentation for a written offer letter. Other alternative lenders have a much longer application process and can be pretty expensive.

The Financing Solutions FedEx line of credit costs nothing to set up, and there are no charges when it’s not in use. It’s an excellent resource for emergency expenses or investments, and applicants can get a same-day offer with no credit precheck.

The founders of Financing Solutions have started and grown several companies together, so we understand how important it is to keep costs low. That’s why we don’t charge you to set up the FedEx line of credit, and there are no maintenance fees. We don’t ask for personal guarantees, and we make approval decisions based on our decade of experience working with small businesses. Find out why we have five-star ratings from the Better Business Bureau and Google. Also:

  • There are no costs to set the line up or keep it in place
  • The easy 2-minute application online application
  • If approved, you’ll receive a same-day, no-obligation offer letter
  • The fastest setup—only 48-72 hours
  • Once you have the line of credit, requests for funds are wired to your bank in minutes
  • You can use your line of credit whenever needed
  • Inexpensive when used (low fees)
  • There are no restrictions in place or collateral required
  • No personal guarantee is required, either
  • Financing Solutions is a leading provider of lines of credit
  • We are a reputable company with an A+ & 5-star rating
  • You can pay off the line whenever you are ready
  • The credit line is easy to renew and renews yearly
  • You have a secured account portal access 24 x 7

A FedEx line of credit is an excellent good funding resource available whenever your company needs it, and it doesn’t carry the heavy burdens of term loan requirements. If you want to see if your route business would be approved and for how much, please fill out the no-obligation, 2-minute line of credit application 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, approved by, not associated with, and has no connection whatsoever with Federal Express Corporation or FedEx Ground.