It used to be nearly impossible to get loans for routes many years ago, but that’s no longer the case these days. There’s 2 different paths to take depending on whether you’re looking at a bread route that would require a loan under $100k, and for businesses requiring over $250k for a loan, there’s a different path to take.
Here’s where I start off by talking like a lecturing grandpa, “Back in my day, we used to have to beg our friends, family, or even the seller for a loan!” Now, thankfully, the climate has changed a bit and people are actually able to get loans for a route.
My experience is this:
You can likely get a FedEx loan for $200k-$2M if you have 20% for a cash down payment for the business you’re looking at
If your FICO is high, you can also potentially get up to around $100k via liquidation loans.
No smoke and mirrors or BS here where you see ads saying things like, “No credit check! Unsecured funding for $500,000! Bankruptcies ok!” The loan program that I’ve seen work for other people is creative but comes with stipulations like you’d expect any legitimate funding source to have such as having good credit. The extent of ‘how good’ your credit needs to be and the fees are going to vary depending on the loan program you use.
I work with multiple banks that is always changing due to different lending climates throughout the years. The best way to get started is to have a quick high level initial conversation with a lending officer and then proceed to shop for a business.
Obviously, you’ll need to do your own due diligence with any company that I suggest to make sure the programs offered at that time are a good fit for your financial profile, but my experiences have been good from what I’ve heard. I’d love to hear your experiences with them (even if you haven’t already purchased consultation from me because someone else has helped guide you).