Gas stations are typically profitable or they are not. There is not much of an in between, and it all relies on location and services. On the surface that sounds like any other business, but gas stations are a special breed when it comes to lending. Frankly, the lender does not want to own a gas station. This makes gas station financing a little more difficult to come by sometimes. These tips may help.
1. Show Profit/ Potential for Profit
Looking for a gas station to buy can be the best option because you will find out through looking at financials whether it is an already profitable business. Of course, if you have the perfect location and idea for a profitable new gas station, that is fine too. Whichever is the case, the key to obtaining a gas station loan is to be able to show that the business is or has a very good potential to be profitable. Remember typically the profit does not come from the gas sales, but from the other offerings.
2. Show You are Qualified, or Have Someone on Board That Is
Whether the gas station is currently profitable or you intend to make it profitable, you must show that you are qualified to do either one. This will mean showing some combination of education and experience or bringing on a partner that has the experience and education needed.
3. Have a Business Plan
A professional business plan is a must. It will have market research, projections, budget and more. It will also lay out your plans for the firm. Since profit is from sales made inside the store, rather than gas sales, how do you intend to get the customers to come inside in this age of pay at the pump? Are you going to offer exceptionally clean facilities, showers for truckers, or restaurant service? Whatever your plans are, the business plan is the place to include it so that lenders will see what you have in mind.
As far as finding a lender, Biz2Credit has you covered. We have a network of 1,300 lenders that offer financing for all types of projects. Whether you need gas station financing or gas station construction loans, we are here to help. Visit Biz2Credit today to learn more.