Almost every week I am asked "how do I finance a gas station that I am interested in buying?" In rAeality, at this time, gas station is relatively easy if a buyer qualifies. So what goes into determing whether or not one can buy a station?
As with almost all businesses that one might consider, the buyer has to qualify credit wise, as with any real estate loan. A FICA score above 700 is almost a given....good credit history with no bankruptcy is a requirement, as is a good report on current debt and overall indebtedness. Lenders will also look at the experience factor, as gas stations, although they appear to be relatively easy to operate, can be a very difficult business to succeed in, with long hours, an aptitude for good marketing and accounting skills, and the ability to buy and sell product at the right price.
Then comes the station that one is buying. Lenders look at gas volume sales , convenience store sales, and overall profitability of the station, which is to say good management. They want a station with a good "track record", even though they are lending to a buyer that has many great ideas on how he or she will increase business.
So, two big factors can determine the kind of financing one can get for a station....how does the buyer look and how does the station look? If all is in place, then both conventional and SBA financing can be considered. For details on our many stations for sale, go to www.gasstation.biz or e-mail ronlargent@shasta.com or call 530-941-0444.
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