Wondering How To Use A 401(K) To Purchase A FedEx Or Bread Route?

Last updated: August 16, 2016

As time has progressed throughout the years, it’s been a consistent struggle to get a loan for a FedEx (or a bread) route, but the good thing is that new lenders are stepping up to the plate and realizing that FedEx loans are not only viable businesses to buy but also ones that offer a lower risk profile than many other businesses for sale. However, sometimes, it’s best to just be able to use your own funds that are in your 401(k).

Many people will use their 401(k) to purchase a business, however, that comes at the expense of penalties and fees to try to structure this on your own. Thankfully, there’s a couple companies out there that facilitate ways to access your 401(k) to buy a route. One of the bigger ones that’s touted on sites like BizBuySell and BizQuest is currently Guidant Capital, however, another company I’ve been looking at is My Solo 401(k) which specializes in 401k business financing (RollOver as Business Startup – ROBS) and can often provide the exact same services these larger companies offer, but at a much more personalized and reasonable rate. 

I recently was interviewed by one of the principals there, George Blower, since some of their clients were looking at FedEx routes. My Solo 401(k) knows the value of proper due diligence especially when people are using their retirement funds. It would be far too risky to use retirement funds for a business where the buyer doesn’t understand the risks, true requirements of a contractor, and the financials of a business. Below is a link to the interview which I think is helpful for most people getting their feet wet looking into FedEx or bread routes.

If you’re working with (or already have worked with) My Solo 401(k), I’d love to hear your feedback to know how they’re doing for you. Always feel free to reach out to me by saying hello!

Find out more about the services My Solo 401(k) offers and see the interview there: