Small Business Loans for Gas Stations
Shield Funding has been securing small business loans for gas stations for more than a decade. If you are looking to improve or expand your gas station we offer competitive rates and flexible terms for all types of borrowers. If you have bad credit or do not qualify for traditional financing we are your trusted loan resource.
BUSINESS LOANS FOR GAS STATIONS
|Estimated Business Loan Term||2 to 18+ Months|
|Rates||12% to 45%*|
|Time in Business Required||2 Months|
|Min Credit Score Require||500|
|Min Monthly Deposits Required||5|
|Min Monthly Revenues||$8,000|
|Min Business Loan Amount||$5,000|
|Max Business Loan Amount||$1,000,000|
|Max Number of Negative Days||3 Within a Month|
|*rates depend on funding duration|
Small Business Loans for Gas Station Owners
Few businesses are more essential to our modern way of life than gas stations. There will always be a market for these linchpins of transit—but there are also significant costs.
Land, equipment, inventory, and insurance can cost hundreds of thousands of dollars every year. So when it comes to running or growing your business, you’ll need a lot of cash available.
Shield Funding provides a wide range of business funding options for gas stations owners. Whether you’re looking for a business loan to invest in a new location or just a bit of credit to build up your inventory, we can help you get it.
What Do I Need to Qualify?
Below is a list of the requirements needed to get approved for funding with our most basic program. Although in some cases there are many additional factors that may be considered, meeting these three requirements gives you a very high chance of having your application approved.
- At Least 2 Months in Business
- 500 Min. Credit Score
- $8,000 Min. Monthly Revenue
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at (888) 882-6117
Submit your online application by clicking apply below and entering a few basic details about your business.
No matter your credit rating, we have funding options that will work for you. Here is a detailed view of some of the business funding options available to you:
Few gas station owners are able to write a check for $300,000 for a new underground tank. If you’re opening a new location or adding a new underground tank, you’ll need a loan to help you out.
Improving your station could require hundreds of thousands of dollars as well—new pumps, EV charging stations, and convenience store equipment can quickly add up to a significant bill. Or maybe you’ll face problems with an environmental cleanup or changing regulations that require significant cash to stay in business.
No matter what situation you’re in, small business loans from Shield Funding can help you pay for the things you need to run your business. With up to $1,000,000, you can retrofit, upgrade, or expand your business. You can even get a good chunk of the money needed to buy a new location.
Depending on your credit and business history, you may qualify for a low interest rate, as well. We offer funding from 5–45% interest on terms from 2–36 months. So this funding option can be customized to suit the needs of your business.
If you have $8,000 in monthly revenue, at least two months in business, and a good credit score, you can qualify for a business loan that will help you run or grow your gas station business.
If you don’t have good credit, you can still get funding. We work with borrowers who have credit ratings as low as 500 on short term business loans.
The details of the business loan will depend on your credit rating and business history. But we offer business loans of up to $1,000,000 even to borrowers with bad credit. Terms range from 2–18 months and interest rates vary between 12–45%.
Just because you’ve made some mistakes in the past doesn’t mean you shouldn’t be able to get funding for your business. We know that going to a bank with bad credit means you’ll probably be turned down. But we can help.
It is well known that gas stations need a lot of incoming cash to pay for expenses. Keeping your fuel tanks topped up, your shelves full, and your employees paid means you need to have a lot of cash on hand.
And because the price of fuel varies so much, you want to have extra cash available to take advantage of a downturn in prices. There are other times when you’ll want the financial flexibility to take advantage of business opportunities, too—maybe someone is selling used fuel pumps, or you want to bring on more employees for a holiday rush.
Whatever the reason, a business line of credit gives you the power to take advantage of opportunities. You can think of a line of credit a bit like a credit card. You have a set amount of credit, and you can use any amount you like.
You then pay the business loan back in monthly installments, including interest. Because we offer lines of credit up to $250,000, you’ll have enough to cover unforeseen costs, like broken or inaccurate pumps, and take advantage of opportunities like fuel price drops.
With rates of 5–10%, you won’t break the bank, either. You’ll need a credit rating of 650 to get started. As long as you have $10,000 in monthly revenue and have been in business for six months, you can qualify for a line of credit that will help you run or grow your business.
Like a line of credit, a merchant cash advance gives you flexible funding to use when you need it. But instead of paying monthly installments, you pay a specific percentage of your credit card receipts. They’re automatically deducted from your earnings, making a cash advance a great option if you don’t want the administrative work of paying back a business loan.
And you can qualify for a merchant cash advance with bad credit, making it a more flexible option. If your credit rating is 500 or above, you can get up to $250,000 at an interest rate of 24–49%. You’ll need monthly revenues of $8,000 or more to qualify.
Business Financing Tips for your Gas Station
A Valuable Location
Gas stations live and die by their locations. The most profitable gas stations are on busy thoroughfares where many vehicles pass by every day. The busier the street, the more likely you are to bring in lots of customers.
But these locations can be quite expensive. If you’re buying land or an old building to renovate, you can expect to pay hundreds of thousands of dollars. And that’s before the cost of building the station, which can multiply that amount.
Sticking with the current trend of large convenience stores that carry a large number of products (which we’ll talk about in a moment) means you’re going to need a lot of space, and that adds to the cost, too.
A gas station that’s already in a good location can command upwards of $1.5 million. And unless you have that cash on hand, you’re going to need funding.
Stocking the Right Inventory
Most gas stations make almost no profit on fuel sales—so they need to get customers into their convenience store to purchase the products that drive profits. And that means you need a solid inventory.
Even a small convenience store can have $20,000 in inventory. Snacks, drinks, car accessories, magazines, over-the-counter medications, and a few staple grocery items are almost required.
To display and sell those things, you’ll need shelves, signs, and a lot of refrigerators. Getting that equipment can be expensive—a refrigeration unit can cost $1,000 or more. Even the smallest convenience stores might have 5 or more refrigerators.
And if you want to stand out from the competition, you’ll need more.
You might stock beer and wine, for example, if allowed by state law. Or offer an expanded selection of things like windshield wiper fluid, antifreeze, motor oil, and wiper blades.
And then there’s ready-made food. Roller grills, hot food displays, freezers, and refrigerators let you offer fresh food to people on the go. Coffee machines that offer lattes, mochas, tea, and hot chocolate are becoming popular, and can cost several thousand dollars.
You might be tempted to not offer products from these expensive machines, but it’s worth noting that they’re some of the best revenue generators in gas stations. You might sell a large cup of soda for $1.20, but you’ll probably only pay $0.10 in inventory for that cup. That’s a great profit margin.
Whether you want to grow your current business or expand into a new location, making sure you offer the right inventory in-store is crucial for success. Investing more upfront can make a big difference to your profitability in the long run.
And that investment doesn’t include keeping fuel in stock. Depending on how busy your station is, you might sell hundreds or thousands of gallons of fuel a day. Paying to keep your station functional adds up.
Maintaining Underground Tanks
Gas stations aren’t usually thought of as environmentally friendly places. But you’ll need to consider a number of protections to make sure that you’re up to code.
For example, most states require fiberglass, double-walled underground tanks—and there are a lot of regulations that you’ll need to comply with. If you don’t meet the state regulations, you could be looking at thousands of dollars in fines every month.
If you have to replace a tank, it could cost $300,000 or more. And you’ll probably have to close the station while it’s being installed. The same is true if you’re looking to add more pumps—you very well may need a new tank.
You’ll also need to install an effective monitoring system to ensure that your tanks aren’t leaking. Leaking gasoline into the soil comes with big fines from the EPA and you’ll have to cover the cost of cleanup. Some cleanup operations have run to over $1 million in costs.
Whether you’re installing new tanks or upgrading old ones, it’s absolutely crucial that you ensure the safety of the environment around your business. A million-dollar cleanup operation could put a huge dent in your profits, or worse, put you out of business.
Electric Charging Stations
The International Energy Agency predicts that there will be 125 million electric vehicles on the road by 2030. Providing charging stations for these vehicles can bring a new group of customers to your stores.
And a growing trend of providing electric charging at gas stations means that if you don’t, you could fall behind local competitors.
To make sure you take advantage of this market, you’ll need to invest in some charging stations. And that can be a significant investment. Some stations cost a few thousand dollars, while others can be $45,000. It all depends on the type of charger. More expensive chargers offer faster charging rates, which can be a big draw.
Electric charging stations can be a profitable venture—but providing this service requires a strong understanding of operating costs. Volatile electricity prices can make it difficult to create a predictable revenue stream.
In the end, offering EV charging means you can bring more people into your convenience store, where you make your real profits.
As you can see, running and growing a gas station is very expensive. Here are some of the funding options we can help you with:
Fuel Your Success with Shield Funding
There will always be demand for gas stations, and that means there’s always an opportunity for profit. But it takes a lot of investment into the business to get it going.
Fortunately, Shield Funding has many types of funding that can help you run or grow your gas station business. Whether you need something big like new fuel dispensers or something small like a few more merchandise shelves, we can help you find the funding solution that meets your needs.
Now that you’ve seen how easy it is to qualify for business loans—even with bad credit—it’s time to think about growing your business.