Looking at FedEx Routes for Sale? Here's How to Finance Your Route

Photo by  Max Boettinger

Myth: Investors Can't Use Financing to Buy a FedEx Route

Fact: You Need to Find the Right Route and the Right Financial Institution

Potential buyers often turn to bank financing to purchase FedEx Ground routes.

Many investors do not want to invest all cash in the purchase cost of a route (typically ranging from $300,000 to over a million dollars). Some investors simply do not have that type of cash on hand and others want to hold back cash in order to cover capital and maintenance expenses for business operations after purchase.

If you are considering financing a FedEx Ground route, the two most common types of loans are a Small Business Association loan and a conventional loan. 

Small Business Association loans

Small Business Association (SBA) loans 


  • SBA loans often offer longer terms with lower monthly payments

  • Some SBAs have deep experience with FedEx Ground operations (thus making it easier and quicker to secure a loan)

  • SBA loans often require a lower down payment (ranging from 5 to 20% of the purchase cost)

  • Loans via SBA are easier to secure for applicants with fewer liquid assets


  • SBA loans may have higher fees

  • For SBAs without experience financing FedEx Ground routes the process may be longer and more difficult than a conventional loan

  • SBA discourages (at times prohibits) supplemental or additional financing to prevent SBA payback issues.

  • Any seller financing included in the deal cannot be paid back until after two years.

Conventional loans

Conventional loans would be a loan you received from a local or national bank.

Places where you have a checking account, a car loan, or your mortgage are all places that would possible provide you with a conventional business loan.


  • Conventional loans take less time and are easier to secure for qualified applicants

  • These loans typically have lower fees and rates

  • Applicants may use personal relationships (such as your existing mortgage or car loan officer) to secure a business loan


  • Conventional loans usually have shorter payment terms and higher monthly payments as a result

  • Securing these loans often requires down payments of at least 20-25% of the total purchase cost

Conventional banks and credit unions have higher standards for business loans and require borrowers to have better credit and more liquid assets.

How to Get Financing to Buy a FedEx Ground Route

If there are financing options available to buy a FedEx Ground route, why do some brokers discourage financing? They probably lack a quality pool of sellers and relationships with financial institutions.

In order to finance a business, banks require clean financial records and historical documentation from the seller. Some sellers keep messy record and these routes are difficult to finance. However, Route Consultants has a deep well of quality FedEx routes for sale with plenty of routes where financing should not be a problem. 

Moreover, we have excellent relationships with several financial institutions and these institutions we regularly work with are familiar with FedEx Ground route sales. Familiarity = less hassle. 

Next steps in Understanding Your Finance Options

If you need help finding and financing a route, here's how to proceed:

1) Connect with our team and let them know up front that you will need to finance your route; our team can help you evaluate the listings with the strongest financials for financing

2) Begin conversations with our team about how to secure financing (note: our team does not provide financing, but can guide you through the process)