Best Gas Station Business Loans Explained
It’s time to take a more in-depth look at the gas station business loans mentioned in the table above. We will indicate how each loan type can help your business thrive. We’ll also explain why we showcased the selected lenders.
Small Business Administration (SBA) loans offer many of the features that other small business funding solutions offer. For example, you can use this loan type to purchase inventory, acquire equipment, or even finance land acquisition. If you do so through an approved SBA lender, however, the government may guarantee a large portion of the loan.
SBA loans are exceptionally helpful when it comes to obtaining capital to open your gas station business. You can also use it for the first year’s operating expenses until you build up your revenue. As a new company, you’ll have access to funds immediately for all your business plan projects.
SmartBiz is aware of how difficult it is to get loans from banks and stepped in with its innovative technology for better fund management. It aids you by comparing various offers that will best suit your business. SmartBiz will adjust the amounts and repayment terms until they find a solution that suits you.
Equipment financing demands a different approach than that required from standard loans. A lender will finance up to all the cost of the equipment you need. You can also use this type of financing to add new items to your inventory or to replace outdated equipment.
Equipment plays a significant role in gas station businesses. You’ll need to plan for short and long-term assets as new technology becomes available every year, drastically improving service delivery.
Fundera is an approved SBA lender, however, we selected it for its comprehensive equipment financing solution. Fundera is happy to work with startup businesses since it understands that it can be difficult to start out as a new gas station owner. Fundera may even negotiate on your behalf to obtain top deals and discounts for asset purchases.
While capital and operating funds are a must, you will also need funds to cover your daily expenses. A business line of credit acts as a revolving loan, letting you reuse the funds that you repay. Its most significant benefit is that you only pay interest on what you use and not the entire credit limit.
Using your available funds on daily expenses while operating the gas station business could quickly deplete your budget. A business line of credit will help you cover unexpected costs, such as emergency maintenance or repairs. You can even use it to pay for marketing campaigns if you’re having a slow month.
BlueVine delivers an excellent business line of credit, making funds accessible in a short amount of time. You can view and manage your loan amount on a client portal. This portal provides complete transparency so that you have insight into what you owe. It also has low requirements and competitive interest rates.
A merchant cash advance provides you with a lump sum amount that you can use to cover short-term costs. However, you will need to repay the lender by paying them a percentage of the sales you make. This is how it works: you will have a credit and debit card machine that customers will use to pay for your services and products. Every time they make a payment, the lender will take a small percentage as loan repayment.
Most customers that pull up at a gas station will use bank cards to pay for fuel and groceries from the convenience store. You will likely be able to pay your cash advance back quickly once your business starts attracting clients.
Square Capital is our choice lender for merchant cash advances. You will need to register as a member before you apply for a cash advance with this lender. Square Capital has the benefit of quick disbursement and easy applications. If you manage to pay the lump sum back sooner, you won’t need to worry about prepayment fees.
Short-term loans help existing businesses who need a fund injection to expand their business or upgrade their site. In most cases, you need to have been running a company for a few years before you can qualify for this loan type. You can pay off a short-term loan relatively quickly if you have a solid business plan.
These loans are ideal for gas stations that are in need of renovations or upgrades. Gas stations also often require heavy capital investment for upgrades, due to industry costs. A short-term loan can help you cover such expenses.
OnDeck has several short-term loan options you can choose from. Alternatively, you can let OnDeck survey your project requirements and offer you a proposal. If you do well on your payments, it may give you a discount on the total repayment value. It can also add other funding alternatives, such as a business line of credit.