Petrol Station Loans - Options

Gas station loans can be "difficult". Environmental concerns, reduced margins, credit card and crisp, is the theft of fuel likely to escape, many banks and financial institutions give rise to, or rather ignore the credit facilities of gas that is enough.

In fact, many owners of a gas station on the lookout for sources of funding to fight, only to find a local bank, which would examine her case. Here in Michigan, where you are now, most banks will not consider funding no matter how successful an operator couldbe.

Finding a good source that belongs to the company for the station and she has no fear of criticism. And a source that it is important to avoid delays and / or treatment of deaths in the lender, you will learn enough to learn about the company, ultimately killing the loan application. You need a specialist.

If you are on the right side of a gas station trying to find a bank or lender, they should be asked some very specific applications, here are some examples.

• HowLiter of fuel currently being sold each year? Most lenders are comfortable in general, with volumes of 1 million gallons per year or more. You have to wash a few settings for the car and convenience store sales. To sell, for example, 32 cents in a shop for every gallon of gas sold, which is generally considered a good number.

• What kind of underground storage tanks are the property? How old are they? Are double-wall? Many sites are elderly aging, single-walledTanks should be replaced in the best interest of the owner and financier.

• Do you know all the environmental problems? In fact, if you have no questions about the state of the environment to be very careful. It is a Phase I and Phase II environmental site assessment has been carried out recently?

• What is your margin per liter of fuel? Most lenders want to see a 7-cent-per-liter margin that the operation should be significant. This is a significant number of the calculation of the credit cardTransaction costs.

• What are your store sales and margins? Should involve an average margin of combined in-store, the band above 20 percent. The margins of cigarettes are typically much lower than any other category. As such have the percentage of all sales of cigarettes a huge impact on the combined average.

• What brand of fuel you sell? Most lenders require a "brand", both at national and regional level.

A special feature of gas station and convenienceShop lenders are also the commercial value than the value of the property. The enterprise value is generally determined by examining the cash flows of the store in combination with other profit centers such as car washes and restaurant service.

It is important that the source for your loan at a gas station a solid experience and understanding of the gas station loan industry.