Gas Station Loans
Neil Advani has proven expertise in financing gas stations, He has to his credit some very difficult deals including contaminated sites. Gas stations have become increasingly competitive over the years for a variety of reasons. Margins continue to decline with major brands like ARCO operating on as low as 5 to 7 cent margins per gallon of gas. Environmental laws have become tougher. Thus, it is essential to have to have a profitable Convenience store attached to the gas station. Most of the profit comes from the store. The gas just pays of the basic bills and more importantly draws customers to the Convenience Store. The convenience store must have a clean neat well lit professional experience. Must have a wide selection of items: Soda Dispenser; Sodas, Juices, Beers, Wines, Packaged Deli foods, Ice Cream, Snacks, First Aid and other Household Convenience Items, Baked Goods etc etc As a general rule the more the inventory the more the sales. Proper display and merchandising is crucial as is friendly personalized customer service.
A Gas Station that receives most of its profits from the Gas Sales is very risky and there will be time when the margins on Gas will be so slim making it impossible to even pay your bills leave alone make a profit. Expanding a Gas Station to include a Sandwich Franchise or other prepared foods or a Mexican Taqueria or Pizza is another good idea. Gas Stations have a large cash component and a lot of liquid inventory. Unless you have solid prior experience in this industry it is advisable to be an owner operator, absentee ownership is a recipe for failure. Prior to financing the first step is to make sure you know ht you are buying and that the business is profitable. This involves checking their detailed accounting records and area which I have strong expertise in.
Once you have determined that the Business is profitable, the next step is analyze the Business Tax returns of the Gas Station for the last 2-3 years to see if profits are documented and to see what kind of loan the Business will support. Typically minimum down payments are 20%. The down payment must be sourced and verified. Cannot be borrowed funds (exceptions are there). Gift funds from a close relative are fine. Buyer qualifications are very important. The lender wants to ensure that you have direct or related experience. Credit must be good, need not be excellent. A score upwards of 680 will work. What is more important is that the Buyer does not have any derogatory records and his/ her existing personal debt is manageable. A key to financing is to prepare a professional package that a lender will be interested in and to have the right contacts in the lending industry. This is my area of expertise. I do all the financial analysis on the loan and prepare a professional package which highlights all the positive aspects of the deal. In case a loan is not possible I let the Borrower know upfront so that there is the Borrowers time and efforts are not wasted.
Gas station loans are very tough to get these days. However I am still able to finance them at most competitive prices. Due to our solid experience in financing such businesses we are able to get you quotes for gas station small business loans better than 90 percent of those you will get from other brokers. And more importantly we can do deals that most people cannot. You can get financing for the business with or without a property. Our interest rates are typically the Wall Street prime plus 1.5 to 2.75 % only. The down payment for gas station loans is approximately 20%.
We offer financing solutions for gas stations all over the United States and you can get a pre approval within a few business days after you submit the required documentations. If you are thinking of a loan for a gas service station then give us a call and we will offer you opinions on gas stations for sale and we will also offer you different gas station financing options. We fund NATIONWIDE. Also provided other services like motel loans, motel loan, Motel Finance, Motel Financing Please call me for a no cost no obligation consultation at 707 355 0642.