Securing Financing for Route Business Purchase

Securing financing for a route business purchase can be extremely difficult.  Most conventional lenders cannot issue loans for routes due to the nature of the business.  The only collateral for the lender would be the route itself.  If the loan holder defaulted on the loan then the lender would have to manage the route until they found a suitable buyer.

There are really only a couple of options for securing financing on a route purchase…

1. Many companies offer financing through their own banking partner.  Pepperidge Farm, Bimbo and other large manufacturers stand behind the value of their routes with their bank partner.  This allows the bank to issue financing because they know that the company will maintain the route if the loan defaults.  The company would continue running the route until they sell it and pay the bank back for the loan.
2. Another possibility would be to go through a company that specializes in startup/small business financing.  These loans are approved based solely on personal credit history.  The loans are often referred to as unsecured business finance and come in the form of business credit cards which cash can be drawn from.  We have specialists that can provide a no cost pre-approval process.  Contact us here for more info.

Unfortunately securing financing for route purchases is very difficult.  There are limited options unless the company itself is providing financing through their bank.  We do have funding specialists that can provide free advice to anyone who needs outside financing.  If you are interested please contact us at any time and we will have a specialist reach out.  Thank you.

Mission Route in Ogden, Utah Area – $50,000

Weekly Sales: $6,800    Annual Gross: $60,000

Mission route with exclusive distribution rights for Mission, Guerero, Calidad and Great Value (Walmart) tortilla products in the Ogden, Utah area. The current owner utilizes warehouse space in Salt Lake City. The primary accounts include Winco, Walmart, Costco, Anaya’s, Kim’s and several other local businesses. The sales territory is protected and exclusive through an agreement with Mission/GRUMA Inc. Owner will consider some seller financing for qualified buyers.

This Mission route is currently averaging $6,800 per week in gross sales. The commission rate is approximately 17% after accounting for any returns/expired product. This generates $1,150 in weekly gross income. The current owner estimates approximately $210 per week in expenses which includes truck/trailer costs, business liability insurance, fuel, storage costs and any other fees.

The route currently takes approximately 35 total hours per week. The owner does work 7 days per week although a new owner could reduce that number, especially if they are willing to hire a merchandiser for the weekends.

Current owner will provide two weeks training and ensure there is a smooth transition. A 25 foot enclosed Wells Cargo trailer will be included in the sale. This is a turnkey opportunity. The new owner will be making money the first day they takeover. A motivated owner could also grow this business by adding new accounts or increasing sales efforts at existing accounts. Great opportunity to run your own business.

If you have any questions please contact us today.  Thank you.