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05-01-2017, 06:48 PM #1
- Join Date
- Oct 2014
- Posts
- 30
FedEx Ground Contractor looking to purchase a new route
I've been working with a client for over a year now that is a FedEx Ground Contractor in the state of Washington that is trying to purchase a new route.
I recently helped him obtain a 150k SBA loan in January of this year. Business grosses about 500k a year, He's had the business since 2008, he's sent me a few routes he's interested in. The cost for the routes are all over the place, lowest one was $199,999
Kind of lost on this one, really nice guy that I was hoping I could help out!
Anyone who has some ideas please PM me!
Thank you
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05-02-2017, 09:38 AM #2
- Join Date
- Aug 2015
- Location
- Boulder, CO
- Posts
- 755
I've looked at several of these over the last few years and in general, have been impressed with the profitability of Fed Ex routes. I've not yet been able to fund them though, for a variety of reasons. The barriers to entry are low in this business, but the buyers I have met with did not have any money and were looking for 100% financing with no skin in the game.
This one looks too small for my minimum funding of $100k.
That stated, from the deals I have seen, the trucks are owned by the contractor, not by Fed Ex. If your client is short on cash, perhaps he can leverage his existing trucks with a sale/leaseback and use that money as a down payment on the new route. Cash advance payments would likely put him out of business.
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