Gas station financing is available for -Branded stations -Non branded stations -Full service stations
3/16/09: In an effort to stimulate the economy President Obama enhanced the SBA for funding small businessess, he also liberalized restrictions that have been imposed for the last year. It is in the best interest for gas station owners to contact a qualified lender who understands the business and one who works with lenders who also understand the gas station lending business. Let's say you are in the market to buy a gas station, convenience store or truck stop, then you are probably looking forgas station financing. Time, then, to find some pain relievers. Up to this point, it has been hard to find anyone who is willing to even talk about gas stations. It’s the same thing with convenience store financing or truck stop financing. So say you finally find a gas station you want to buy. Finding the gas station financing is like trying to find a hen's tooth. The financing for these properties has been historically nearly impossilbe to get in the traditional way of financing . In general, banks have an aversion to financing these businesses for many reasons. Occasionally your local bank may have the best deal for you, always assuming they would even do it. Your local bank may offer you the best deal because of the depository relationship you would have with them, but, NEWSFLASH, unless you talk to the right lenders they will probably not do your deal.
Let's not forget about the price of fuel these days! As the gallonage and pool margins abate, it is best you deal with someone who knows the market! Banks in general do not like to finance gas stations and convenience stores for the following reasons:
* Verifying cash flow for petrolium retail, basically a "cash business", is more difficult than other commercial properties like apartment or office buildings. * The petrolium retail industry has been perceived to have environmental risks not present in other kinds of commercial properties. Loan evaluation is much easier when less perceived environmental risks are involved. * Posing an even larger probelm for lenders is the chance of the gas station or convenince store being foreclosed on. Many other kinds of income properties will still produce rents until the suitable buyer comes along. If a gas station or convenience store defaults, the bank does not step in and run the business. * Gas fuel margins have been their lowest in years, due to the ever increasing amounts of hypermarts and big box retailers who do not care about fuel bargins. They just want to get people in the door. Have you listened to the news recently and heard what the price of a barrel of oil is?
No wonder you get a quick "no" from your local bank when asking about gas station financing.
Do not let this discourage you. If you have the right connections, your business opportunty and gas station financing is just around the corner. Step outside that box and take a chance. Often people think that an SBA loan is a very time consuming thing, but with the right people on your side, your SBA loan can posibly close in less than a month.
Kendall Schnieder works with preferred SBA lenders in the Western US and specializes in commercial real estate loans. He can be contacted at www.mark4Capital.com or 530-227-0203
Gas station financing is available for
