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…
- 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.
- 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.
