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FedEx Contractor Finds Financing Source That Delivers For Him

Feb 28, 2019
Posted by: Stearns Bank

Michael Velmont doesn’t mind a good analogy.

He compared working with Stearns Bank on his recent SBA loan to baking a cake. Michael worked with Stearns Bank on the purchase of additional routes for his FedEx delivery company, Velmont Transportation Inc., based out of Palatine, Illinois.

“Stearns Bank made it a smooth and easy transaction. They provide a high level of customer service, which made the acquisition process easier."

"Now that’s a great recipe for success.”

Michael started working with Stearns Bank in 2016 when he started to expand with more route acquisitions.

He has also financed delivery trucks with Stearns Bank going back to that time. Part of the reason Michael started to purchase more routes is because FedEx requires its contractors to have 100 percent overlap with their ground routes after a certain period of time.

“I was recommended to Stearns Bank because of its fantastic reputation. Right after we closed on my first deal, I financed a truck right after that,” Michael said.

“When one of my counterparts in home delivery was selling some of his routes in our area, I had the opportunity to acquire them (in June 2018). There’s always strategy behind everything we do in this business.”

Understanding The Business

Michael started in the delivery business because it allowed him a more flexible schedule after being in his previous job for 25 years.

“My oldest daughter is 14 and my youngest is nine. It’s frightening how time flies by. I wanted to make sure I was around more for them,” Michael said.

Working with a financial institution that feels like family is something that stood out right away.

“Stearns Bank understands our business," Michael said. "I don’t think other banks understand what we do and they work very slowly. Stearns Bank told me the timing of everything and got everything wrapped up.

“As a contractor, the less hassle and quicker something goes, the better. That means a lot to me. I’ve been on the financing side before and it was amazing the hoops I had to jump through to get to the finish line with my customers. Stearns Bank made it look easy.”

Future Growth For His Business

The growth of the package delivery business means that Michael will most likely finance more trucks and routes in the future. Velmont Transportation Inc. currently has 14 employees working for him.

“The growth of this industry is so enormous. There is enough business to go around and grow aggressively if you want to,” Michael said. “The forecast is for home package delivery to double or triple in size the next five years. We’re not going to be running out of packages anytime soon.

When Michael needs more financing for his business, he knows he’s going to be calling Stearns Bank.

“Stearns Bank does a good job of prepping me for the next purchase. They offer advice, what to expect and how to structure everything," Michael said. “Relying on Stearns Bank’s experience and knowledge is the absolute best way to go.”

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