Gas Station Business Loans

What are the different types of gas station business loans?

• Bank Loans: If you’re a well established business or an experienced business person, you may be able to qualify for a bank loan. These loans have strict qualification requirements and you’ll need excellent credit to be confident of getting accepted. That said, they offer some of the lowest interest rates available (2-5%) so it will be well worth it if you are accepted.
• SBA Loans: SBA loans are term loans guaranteed by the Small Business Administration. They offer interest rates of around 3% - 13%, which makes them particularly desirable. The SBA 7(a) loan program offers funding for any business expense, while their 504 loan program can be used exclusively for large assets and real estate. They also offer the Microloan program for female-led and minority business owners, which provides funding up to $50,000. SBA loans also have strict qualification requirements, including personal collateral and a down payment. It can take up to 12 weeks to receive your funding from the start of your application, so they’re not a good option if you’re looking to move quickly, but if you have time and qualify, the interest rates are worth it.
• Term Loans: Term loans are the most flexible and fastest form of funding available through online lenders. Interest rates are usually higher than what you can get from the options above, but if you have excellent credit they may be comparable. They can be used for any business purpose, offer terms from 3 months to 10 years, and most will fund your account within 3 working days.
• Equipment Loans: If you are planning to use the loan for equipment, think about getting an equipment loan. These loans are essentially term loans where the equipment acts as collateral for the loan, so interest rates are generally good and you may not need to personally guarantee them.
• Business Line of Credit: A business line of credit is a good alternative option to a traditional loan if you’re looking for flexible financing. A line of credit is like a credit card, in that you have a maximum credit limit and you can borrow what you need up to that limit. You only pay interest on what you’ve borrowed and can use credit again once you’ve paid it back.

What are the pros and cons of using a gas station business loan?

PROS

• Generally more affordable than alternative forms of funding
• Predictable daily, weekly, or monthly payments
• Many fund within just a few days, allowing you to expand quickly

CONS

• You usually have to provide a personal guarantee and business lien
• The best loans require high credit scores
• It’s difficult to secure funding for your first gas station through a loan

Is it hard to get a business loan for a gas station?

It can prove a challenge if you do not already have a gas station business as lenders want to see that you have already proven yourself a success before lending you money.

Gas Station Loan Calculator

How to Get a Gas Station Business Loan

To qualify for a gas station business loan, you usually need to meet the following minimum requirements:

• A credit score of 600 or higher
• A minimum annual revenue of $50,000 - $100,000
• At least 1 year in business
• Be willing to put up a personal guarantee and in many cases a business lien too

You can apply for your chosen loan online and the application process is usually straightforward. Simply ensure you meet their minimum requirements and follow their instructions. You’ll need to provide essential business information (such as licenses), personal information, and financial information, such as tax returns. Most applications will allow you to save it as you complete it so you won’t lose your progress if you need to stop to gather more information.

Compare gas station loan options from top lenders

Once you’ve decided a gas station business loan is right for you, it’s time to compare rates. Comparing interest rates is one of the most important steps in the process as it will help you get the most affordable loan possible. Find the best gas station business loan by comparing loans in our comparison tables and then click apply on the loan that best fits your needs. All you need to do then is follow their application process and you’ll soon have the funding you need to grow your business.