FedEx Routes for Sale Basics

How to Conduct Due Diligence on FedEx Routes for Sale

As you consider buying FedEx Ground routes for sale you need to know that these businesses are structurally simple and niche. What do we mean by that?

If you know what to look for, conducting due diligence on a FedEx Ground operation can be straightforward. However, if you approach due diligence with these routes as you would a more traditional business for sale you are going to miss key flags.

Financing a FedEx Route: Don’t Be Afraid of Debt to Get Started

Don’t be afraid of using debt/leverage to buy these businesses. These FedEx routes for sale can sustain a higher debt load than what some other businesses allow. Typically, your finance source will require a down payment of 20% or more. With a 20% down payment you lever your business 4:1. You have 1 part down payment and 4 parts debt.

Distinguish Yourself as a Buyer: Secure the Best FedEx Routes for Sale

Are you having trouble getting a response from a route broker? Or, are you finding that every listing that peaks your interest is under contract before you ever even make contact with the broker? In this industry, there are 20 prospective buyers for every FedEx route for sale listing you see. As we noted previously, the market is hot!

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

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

Before You Buy FedEx Linehaul: Get the Pros and Cons

There are two distinct types of FedEx businesses: pick-up and delivery (P&D) routes or a linehaul run.

Linehaul runs are a lucrative and risky business. Some contractors say linehaul runs are 90% boredom and 10% terror. But they can be an incredibly profitable investment for the right contractor. 

Are you the right contractor for a linehaul run?