4 Tips on How to Get a Loan for Your FedEx Contractor Route
As a FedEx contractor, applying for a loan can be a stressful time. It often feels like a process that is out of your control, conducted by complete strangers who have the power to make or break your life as a small business person. However, there are certain things that you can take control of that will make the loan application process easier to survive.
Tip #1
Prepare an elevator pitch. Whether or not you deliver your mini speech verbally or on paper, the bank will want to know why you need the money. It’s a good practice to share the pitch with friends and family so you can refine your reasons to be clear and succinct. Are you looking to start a business? Grow a business? Are you fearful that you will need a financial safety net? You would be amazed to learn how many people lose sight of the reason they need the loan to begin with.
Tip #2
Want to buy a FedEx route? Explore the myriad of options to secure funding before committing to a financing type. There are several ways to finance your contractor route, including banks, online lenders, microlenders, seller financing, and others.
Banks tend to be the best bet if you have planned your financing in advance (big banks are still relatively slow). It’s also a good option for people with excellent credit and have a fair amount of collateral to put the bank at ease.
Online lenders are often more forgiving on the collateral front and they do typically find loans faster than traditional banks. All of this comes at a price, of course. APRs can sneak to a 3-digit number if you do not do your due diligence.
Tip #3
Know your credit score before you go through the application process. The credit score associated with you or your business name is an indicator to loan originators on the risk they are taking on by issuing you financing. It also is a major factor in determining what your rate will be. A great credit score equals lower interest rates and ultimately, more money in your pocket.
Tip#4
Take the aforementioned elevator pitch and turn it into a full-fledged business plan that includes financial statements and projections. The plan should include a well-written executive summary and visual aids to help people understand the numbers you are presenting.
When you are a FedEx contractor, securing a loan can be a stressful part of the process. However, the pain is only temporary. Once the money is secure, you will be one step closer to carrying out your dream as an independent business owner.
