Finimpact

Best Convenience Store Loans

Net profits for convenience stores are notoriously thin, which can put owners in a bind when they need cash to cover business expenses. Though loans through banks and credit unions are difficult to qualify for, there are many alternative lenders offering accessible convenience store loans.

Convenience Store Loans
Christi Gorbett
Written by:Christi Gorbett
Freelance Content Marketing Writer

Convenience stores have certainly earned their name—they provide people with a convenient way to get the products they need without wasting their time at the grocery store. But running a convenience store isn’t easy; it requires keeping up with new inventory trends, changing customer demands, government licensing requirements, and unexpected expenses while still trying to make a profit.

Thankfully, convenience store owners don’t have to manage all of this on their own; non-traditional lenders are happy to provide financial help to cover costs of inventory restocking, store remodels, licensing fees, equipment purchases, and other necessary expenses. In this guide, we’ll look at some of the top choices for convenience store financing to help you secure the capital necessary to keep your business running.

Our Top Picks for Convenience Store Loans

biz2credit review
  • Multiple loan types available
  • Funding in 48h
  • Soft credit pull
credit score
Min. Credit Score 600+
loan amount
Loan Amount $25K - $6M
loan repayment
Loan Repayment 12-36 months
forafinancial
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$750K
Loan Repayment
Loan Repayment 4-15 months
credibly
  • Simple application process
  • As soon as same day funding
  • Open to high-risk industries
Credit Score
Min. Credit Score 500+
Loan Amount
Loan Amount $5K-$400K
Loan Repayment
Loan Repayment 6-18 months

How to Choose the Best Convenience Store Loan

Figuring out how to secure a convenience store loan can be challenging, especially if this is the first time you’ve ever needed small business financing. To find the best loan options, our experts have used the criteria below; we recommend that you consider these factors when evaluating the various loan options:

  • Loan Features: The most important factor to consider when shopping for loans is the features they offer, including loan terms, repayment options, and loan amounts. For example, if you need to borrow $100,000 to purchase shelving, refrigerators, cash registers, coffee machines, a walk-in freezer, and other equipment, there’s no point in applying for a microloan that tops out at $25,000.
  • Application Process: The application process can sometimes seem invasive with lenders requiring massive amounts of documentation and taking forever to make a decision. To simplify the process and save time, select lenders that make it easy to apply, offer preapproval with a soft credit pull, and disburse funds quickly.
  • Interest Rates and Fees: How much the lender charges in interest rates and fees will affect the amount you must repay over the lifetime of the loan. Look for lenders that offer competitive APRs and reasonable loan origination fees to save yourself money.
  • Qualification Process: It’s also important to consider the qualification process when comparing loans. Make sure that you meet the minimum requirements for personal credit score, annual business revenue, and time in operation before applying.
  • Customer Support: At some point during the life of your loan, it’s likely you’ll need help from customer service. But what happens when you can’t get through to a CSR? To prevent this from happening, check if the lender offers multi-channel support and access to a live representative. It’s also helpful if they provide supplemental information via blog posts, FAQs, and a help center on their website.
  • Online User Reviews: It’s a good idea to check reviews that other borrowers have left, especially on independent review sites like Trustpilot. Read through user comments to see if the majority of customers report having a positive or negative experience with the company before making your selection.
  • Perks and Bonuses: You should also consider additional factors when selecting a lender, such as payment flexibility, advertising transparency, and advanced technology. For example, don’t bother working with a lender that only accepts payment by mail; select one that offers the convenience of paying online or through an app.

Best Convenience Store Loans for 2022 - Full Overview

In this section, you’ll find detailed descriptions of the various convenience store business loans including pros and cons, loan features, and common uses.

1.Biz2Credit - Best for Term Loans

Biz2Credit offers term loans that are perfect for any convenience store owner who wants to expand their current business, build a new one, or cover business expenses. With high loan limits, competitive APRs, and extended payment terms, these are an excellent choice if you need to buy new equipment, remodel your store’s interior, or purchase additional inventory.

Pros
Straightforward application process
Generous borrowing limits
Competitive interest rates
Flexible loan repayment terms
Various loan types available
Cons
High credit score required for application
Strict business eligibility requirements
Loan origination fee may apply


Biz2Credit offers term loans ranging in amounts from $25,000 to $250,000. Interest rates for these loans start at 8.99% and funds must be repaid over 12 to 36 months. There are no maintenance, prepayment, or late payment fees, but a loan origination fee between 1% and 6% may apply.

The requirements for loan approval are rather rigorous; to qualify for Biz2Credit’s convenience store financing, you must have a personal credit score of 660 or higher. Also, your business must be in operation for at least 18 months with an average annual revenue of $250,000 or more. Biz2Credit also offers working capital and commercial real estate loans with similar requirements.

The Bottom Line

Biz2Credit’s convenience store loans are an excellent source of funding for any of your business-related expenses, including inventory purchases, shelving upgrades, and store remodels. Qualifications are strict, however, so only apply if you’ve been in business a while with a high annual revenue and good credit.

2. Fora Financial - Best for Merchant Cash Advance

Fora Financial offers merchant cash advances, a popular kind of alternative convenience store financing. A merchant cash advance isn’t technically a loan; instead, you receive a lump cash payment in return for a percentage of future sales. This is an excellent option if you find yourself short of capital to cover necessary business costs but you’re unable to secure a traditional loan.

Pros
Accessible options for borrowers with poor credit
High borrowing limits
Funding received in as little as 24 hours
Easy repayment through a percentage of sales
Cons
High interest rates
Charges an origination fee of 1% to 6%
A borrowing fee may also apply


Fora Financial offers merchant cash advances ranging in amounts from $5,000 to $500,000. You receive this payment up front then repay the loan incrementally through a percentage of your credit card and debit sales, plus an additional fee. Interest rates vary but are typically assessed at a factor rate between 1.1 and 1.3. For example, if you receive a cash advance of $100,000 at a 1.2 factor rate, you must repay $120,000.

There is no set repayment term; a percentage of your sales is taken until the loan has been repaid.

Meeting the requirements for this type of convenience store financing is easy; you only need to be in business for six months earning $1,000 per month to qualify. It’s also recommended that you have a personal credit score of at least 500 before applying.

The Bottom Line

A merchant cash advance is ideal for convenience store owners who need immediate access to capital but may have trouble qualifying for a traditional loan. Merchant cash advances are a flexible financing option that allow you to borrow against future sales. They can be used for practically any reason, including to improve cash flow, purchase inventory, hire additional cashiers, or manage emergencies.

3. Credibly - Best for Business Expansion Loans

Crediby offers a variety of convenience store business loans, including working capital loans, SBA loans, line of credit, merchant cash advance, and equipment financing. However, one of their best financial products is long-term business expansion loans, which allow convenience store owners to borrow a large amount of capital and repay it over three to ten years.

Pros
Simple application process
Prequalify without harming your credit
High borrowing limits—up to $5 million
Loan can be used for various types of expansion
Lengthy repayment terms of three to ten years
Cons
Loan qualifications not published
APRs can be high for low credit borrowers
Origination and other fees may apply


A long-term business expansion loan through Credibly allows convenience store owners to borrow any amount between $150,000 and $5 million. Repayment terms are flexible; you have between three to ten years to pay off the loan. Interest rates vary greatly based on your qualifications, ranging from 8% for well-qualified borrowers to 25% for those with poor credit.

Qualifications for these loans aren’t exactly clear; there’s no minimum credit score, annual revenue, or time in business provided by the lender. The good news is you can easily apply online and find out within seconds if you prequalify for a loan.

The Bottom Line

A long-term business expansion loan through Credibly is an excellent choice if you’re wanting to grow your business but don’t have the capital to do so. For example, these are the perfect solution if you have a thriving corner store and want to buy or open a new convenience store at a different location. These can also be used to cover other expansion costs, including remodeling, investing in new equipment, and hiring additional workers.

4. Fundbox - Best for Business Line of Credit

If you want quick access to cash to help cover a variety of convenience store expenses, then apply for a business line of credit through Fundbox. Borrowing limits range from $1,000 to $150,000 and you only pay interest on what you withdraw. With a simple application process, you can prequalify without harming your credit.

Pros
Uncomplicated application process
Borrowers with fair credit can apply
Funds received quickly, as soon as one business day
No origination, maintenance, or prepayment fees
Cons
High interest rates, especially with poor credit
Relatively low borrowing limits
Few financial products available


Fundbox provides convenience store owners with a flexible line of credit between $1,000 and $150,000. You can draw any amount up to your maximum credit limit whenever you need access to capital then repay what you borrow within either 12 or 24 weeks. You’re only charged interest on your open balance—4.66% for credit lines with 12-week terms and 8.99% for 24-week terms.

To qualify for a business line of credit through Fundbox, you need a personal credit score of at least 600. You should also have a minimum of six months in business and earn annual revenue equaling $100,000 or more.

The Bottom Line

A line of credit through Fundbox is the perfect option for convenience store owners who want access to a flexible line of spending. And best of all, these funds can be used in practically any way—to stock up on inventory, replace a broken refrigeration unit, upgrade your coffee station, or buy new inventory-tracking software.

5. National Funding - Best for Equipment Financing

National Funding provides financing to help convenience store owners buy the equipment they need to keep their businesses running. These loans can be used for a variety of equipment, including drink dispensers, refrigerators, and cash registers. Potential interest rates aren’t publicly divulged, but you can easily prequalify by filling out an application with the lender online.

Pros
Easy application and fast funding
Has a high acceptance rate
Borrowers with poor credit can apply
Extended repayment terms
Cons
Interest rates not disclosed publicly
Relatively low borrowing limits
Some additional fees may apply


Through National Funding, convenience store owners can borrow up to $150,000 to cover equipment purchases then repay the loan over three to five years. Interest rates for these loans aren’t publicly disclosed so check with the lender for more details.

Qualifying for a convenience store loan through National Funding is fairly easy; you only need a credit score of 500 to apply. Of course, the higher your credit score, the better APRs you’ll qualify for. Additional requirements include being in business for at least 12 months, earning a minimum $100,000 in revenue annually, and no recent bankruptcies.

The Bottom Line

n equipment financing loan through National Funding is perfect for any convenience store owner who needs to upgrade their equipment, but they don’t have access to a lot of excess capital. These funds can be used to acquire a variety of equipment, such as food display cases, walk-in freezers, cup dispensers, and coffee pot stations. With a minimum credit score requirement of 500, these loans are especially helpful for owners with past credit problems.

6.OnDeck - Best for Short-Term Loans

OnDeck’s offers short-term loans to help convenience store owners pay for unexpected business expenses. Applying is simple, approval is fast, and funds are disbursed in as little as 24 hours. You can borrow up to $250,000 and repay within three to 18 months, which makes these an excellent short-term funding option.

Pros
Easy application process
Fast approval decisions
Funding received in as little as 24 hours
Borrowers with fair credit can qualify
Cons
Only two financial products available
APRs may be high—up 46.06%
Additional loan fees may be charged
Few repayment term options


OnDeck offers corner store financing in the form of short-term loans. These loans can be taken out in any amount from $5,000 on the low end all the way up to $250,000 on the high end. APRs can fall anywhere in the 11.98% to 46.06% range and repayment must be made within three to 18 months. Loan origination fees up to 5% and loan maintenance fees may also be assessed.

To qualify for a short-term loan through OnDeck, your business needs to be in operation for a minimum of 12 months earning $100,000 in annual revenue. It’s also recommended that owners have a personal credit score of 600 or higher to be approved for a loan.

The Bottom Line

OnDeck’s short term loans are an excellent option for convenience store owners who need fast access to cash to meet unexpected operational expenses. For example, these would be the ideal choice if you need to stock up on seasonal inventory, replace old equipment, or fix plumbing in the restroom.

Try OnDeck

Best Convenience Store Loans - Features Comparisons

This table offers you a convenient way to compare the various loan features offered by each lender.


Company Min. Credit Score Min. Time in Business Min. Annual Revenue Loan Amount Interest Rate
Biz2Credit 660 18 months $250,000 $25,000 to $250,000 Starting from 8.99%
Fora Financial 500 6 months $1,000 per month $5,000 to $500,000 Factor rate between 1.1 and 1.3
Credibly Not disclosed Not disclosed Not disclosed $150,000 to $5 million Between 8% - 25%
Fundbox 600 6 months $100,000 $1,000 to $150,000 4.66% for 12-week terms and 8.99% for 24-week terms
National Funding 500 12 months $100,000 Up to $150,000 Not disclosed
OnDeck 600 12 months $100,000 $5,000 - $250,000 11.98% to 46.06%

The Convenience Store Marketplace in the United States

To help you gain a better understanding of the convenience store marketplace, here are some key statistics about the industry, its outlook, and potential areas of growth. To help you gain a better understanding of the convenience store marketplace, here are some key statistics about the industry, its outlook, and potential areas of growth.

Recent Convenience Store Statistics

There are currently more than 150,000 convenience stores in the United States. Though many people automatically think of chain corner stores with big names like 7-eleven, Speedway, Casey’s, and Pilot Flying J, the vast majority of convenience stores are independently run.

Operating a convenience store can be very lucrative; the average amount of in-store sales equals $1.62 million dollars for each convenience store in the United States. A large portion of that income is from sales of cigarettes, beer, and other beverages. Nationwide, corner stores were responsible for selling more than $56 billion in cigarettes in 2020.