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Business loans to buy a gas station

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Before you buy a gas station, learn what it takes and how to find financing.

Gas stations are on just about every corner. Even with the push towards green cars and hybrids, there’s still a huge market out there for gas and convenience store items. If you’re looking to invest in a commercial property and want to get hands on with your business, a gas station could be the right choice for you.
LendingClub Business Loans

LendingClub Small Business Loans

Term loans with competitive fixed rates and no prepayment penalties for businesses at least 2 years old.

  • Minimum Amount: $5,000
  • Maximum Amount: $300,000
  • Loan Term: Up to 5 years
  • Simple online application process with fast funding
  • Must have been in business for at least 2 years with annual revenue of $50,000+

    How can I finance the purchase of a gas station?

    Buying a gas station can be costly. If you need help financing your purchase, you’ll need to apply for a business loan. You can find business loans from a variety of lender types — including online, bank and alternative lenders. It’s worth shopping around to find the lender and loan that meet your needs.

    To qualify for a loan, you’ll need to provide business account balance sheets and profit statements for the gas station to demonstrate its current financial position. The lender will also consider your own personal finances and any previous industry experience you have before approving or denying your loan.

    Business loans to consider when buying a gas station

    Rates last updated July 19th, 2018
    Unfortunately, none of the business loan providers currently offer loans for these criteria.
    Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
    LoanBuilder, A PayPal Service Business Loans
    Customizable loans with no origination fee for business owners in a hurry.
    $5,000
    $500,000
    Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
    LendingClub Business Loans
    With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
    $5,000
    $300,000
    2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
    OnDeck Small Business Loans
    A leading online business lender offering flexible financing at competitive fixed rates.
    $5,000
    $500,000
    Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
    Kabbage Small Business Line of Credit
    A simple, convenient online application could securely get the funds you need to grow your business.
    $2,000
    $250,000
    Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
    Lending Express Business Loan Marketplace
    $5,000
    $500,000
    At least 3 months in business and $10,000+ in monthly revenue. Your business might also qualify if it's been in business at least 6 months with $3,000+ in monthly revenue.
    National Business Capital Business Loans
    Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
    $10,000
    $5,000,000
    Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
    BizLoans.io Business Loan Marketplace
    Get connected with wide range of loan amounts and multiple loan types from reputable lenders.
    $20,000
    $500,000
    Must have good credit and at least 6 months in business.
    Fora Financial Business Loans
    No minimum credit score requirement and early repayment discounts for qualifying borrowers.
    $5,000
    $500,000
    Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
    Excel Capital Management Small Business Loans
    Get personalized financing options that suit your unique business needs in just a few simple steps.
    Varies by loan type
    Varies by loan type
    Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.
    Balboa Capital Small Business Loan
    Short-term business financing with no minimum credit score or physical paperwork required.
    $2,500
    $250,000
    Must make $300,000 in annual revenue and be established for at least one year prior.
    LendingTree Business Loans
    Multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
    Varies by lender and type of financing
    Varies by lender and type of financing
    Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.

    Compare up to 4 providers

    How much will a gas station cost?

    Every gas station comes with unique set of expenses and assets, and costs can vary depending on the size and location of the business. You can choose to rent the land its on or buy it outright, which impacts the final cost. Business-specific factors, like electronic doors and security systems, will also impact how much you’ll pay. Gas stations could cost over $1 million to purchase.

    Have the business professionally evaluated before you buy, and make sure your assessment include the following:

    • Previous years’ financial statements
    • Physical assets like machinery, buildings, equipment and stock
    • Registration papers and permits
    • Property lease, if applicable
    • Market conditions, including competition in the local area
    • Sales reports and forecasts
    • Business plan for future growth
    • Employee skills, experience and pay rates
    • Supplier details and arrangements

    While you may consider trying to calculate the value of a business yourself, this is a task that’s usually best left to an expert. An accountant or business advisor or can help you analyze both your own finances and the value of any business you’re considering buying. They can also examine market trends to help you work out a fair value for the gas station.

    What are the ongoing costs of ownership?

    Running a business takes time and money, and this can be an investment for years to come. You’ll not only have to factor in the changing price of gas, but also the cost of running an attached convenience store. Most of your money will be made inside the store, not at the pump. Success comes from good retail management: regular shifts, hours and inventory.

    Large, clean stores attract customers, but so do low prices at the pump. In fact, many experts on the industry state that low market prices will have a positive impact on your profit margin, which is often around 2%.

    Your basic costs will largely depend on the following points:

    • Employee wages
    • Refilling the tanks
    • Ordering store items
    • Store maintenance

    Generally speaking, gas station monthly operating costs range between $10,000 and $20,000.

    What else should I consider when buying a gas station?

    Gas stations require a lot of hands-on work to function successfully. You should keep these points in mind when assessing whether or not you want to buy a station and run your business.

    • Choosing a franchise. Many of the big-name companies offer franchise options for independent owners. While the franchisor covers you if any laws change or your tanks break, you’ll be limited to its gas selection and may face steep increases in rent and competition from other franchisees.
    • Going independent. If you don’t want to join with a major brand, consider buying an independent gas station. While this means you don’t have to answer to a major conglomerate, it also means you don’t get the support with marketing and running your business that you could expect from a major brand.
    • Your experience. Lenders want to know your business will be successful, and that means demonstrating you know how to run a gas station — or at least know how to manage retail. It will be much harder to find financing if you don’t have past experience, and the lender will likely review your funding arrangement yearly.
    • Location, location, location. The location of a gas station and the traffic that passes by are crucial to its financial success. A gas station located on a main road or off an interstate will likely have more business than one out in the country.
    • The competition. While location is critical, gas stations in prime locations will usually have plenty of direct competition nearby. This can have a huge impact on profitability and is another factor lenders consider when assessing your application.
    • Financial position. You’ll need to take a close look at the financial position of the gas station to determine whether it represents a viable purchase and can continue providing a profit. Have a third-party inspector come in to evaluate the business and the physical condition of the store, fixtures and pumps.

    Bottom line

    Although gas stations tend to have thin profit margins, they are a fairly stable business with predictable revenue. If you find a good deal and have the capital to invest, a gas station can be a great way to own your own business and run an intimate store with plenty of potential customers. Compare your business loan options before deciding on a lender to make sure you find the best fit.

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