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Convenience Store Loans: Best Options to Consider in 2023

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

Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

Convenience stores Running a convenience store requires keeping up with new inventory trends, changing customer demands, government licensing requirements, and unexpected expenses while still trying to make a profit.

Convenience store owners don’t have to manage all of this on their own. Alternative small business lenders are happy to provide financial help to cover costs of inventory restocking, store remodels, licensing fees, equipment purchases, and other necessary expenses. 

Top Picks for Convenience Store Loans by Finimpact

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. In this review, our experts highlight the terms, fees and rates of each lender and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs.


Best Convenience Store Loans for 2023 - 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.

Best Overall
Lendzi logo

Lendzi - Best for Businesses With High Revenue

Factor Rate
Starting at 1.10
Loan Amounts
Up to $4 million
Min. Annual Revenue
Key Features
  • Borrow up to $4 million in working capital
  • Min. credit score: at least 500
  • Min. time in business: 6 months
  • Equipment financing up to $2 million
  • Business line of credit up to $250,000
  • See your options without hurting your credit
  • Flexible terms: 3 to 15 months
  • Excellent customer reviews on independent review sites
  • Get funding in as little as 24 hours
Pros & Cons
  • Bad credit accepted
  • Fast funding times
  • Excellent customer service
  • Flexible rates and terms
  • Easy online application
  • Income requirements may be high
  • Rates higher for those with bad credit

Lendzi was founded in 2020, and funded more than $500 million since its inception. Lendzi offers seven different types of small business loans, some that cater specifically to poor credit scores or to those that have been denied a loan elsewhere.


Main Features

Lendzi offers working capital loans to those with bad credit. Working capital loans go up to $400,000 and can be used for any business expense, including purchasing inventory, paying employees, or keeping the store afloat during a slow season. Terms for working capital loans range from three to 15 months, and factor rates start at just 1.15. The minimum credit score required is 500, and Lendzi also suggests a business history of at least six months and an annual revenue of $180,000. If your credit score is higher than 500, Lendzi offers a plethora of other products that may better suit your needs. Applying takes just a few minutes and will not impact your credit score. Once you submit your application, a representative will reach out to review your options. This format is ideal for convenience store owners who know they need a loan but aren’t quite sure which business loan is best for them.

Lendzi is a direct lender and has more than 75 lenders in its network. Credit score requirements are low, and Lendzi doesn’t care if you’ve been denied a loan elsewhere. If you have bad credit and need a business loan, Lendzi is our top recommendation.

National Funding - Best for Equipment Financing

Factor Rate
Starting at 1.10
Loan Amounts
Up to $500K
Min. Annual Revenue
Key Features
  • Min. Time in Business: 6 months
  • Min. Credit Score 600
  • Borrow up to $500,000 in working capital
  • Equipment financing up to $150,000
  • Factor rate From 1.10
  • Fast funding
  • Early payment discounts
  • Equipment financing repayment 2-5 years
  • Working capital repayment 4 months - 2 years
Pros & Cons
  • Easy application and fast funding
  • Has a high acceptance rate
  • Borrowers with poor credit can apply
  • Extended repayment terms
  • Interest rates not disclosed publicly
  • Relatively low borrowing limits
  • Some additional fees may apply

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.


Main Features

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.

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.
Backd business loans

Backd - Best for Cheapest Interest Rates

Factor Rate
Starting at 1.10
Loan Amounts
Up to $2 million
Min. Annual Revenue
Key Features
  • Borrow up to $2 million
  • Min. Credit Score: 640
  • Min. Time in Business: 2 years
  • Industry best factor rate for MCA - as low as 1.10
  • APR for the Line of credit product starts at 35%
  • Flexible repayment terms up to 16 months
  • Get funding in as little as 24 hours
  • Check your rate with a soft credit pull
Pros & Cons
  • Easy online application
  • Fast funding times
  • Flexible payment options
  • Large loan amounts
  • Rates not disclosed
  • Startups will not qualify

Backd offers two types of convenience store loans - working capital loans and business lines of credit. Founded in 2018, Backd is on a mission to provide funding to those that may not qualify with traditional banks and lenders. Since their inception, they’ve funded more than $1 billion to 10,000+ small businesses. And best of all - Backd offers flexible payment options, giving you more control of your loan, and ultimately more control of your business.


Main Features

Backd working capital loans range from $10,000 to $2 million with terms up to 16 months. Payments are made daily, weekly, or semi-monthly. Backd business lines of credit range from $10,000 to $750,000 with unlimited terms. With a line of credit, you borrow the funds, pay them back, and can borrow them again.

To qualify, you must be in business for at two years, make $300,000 or more in annual revenues, have 650+ FICO score, be based in the U.S., and you must have a business bank account. The higher your score, and annual revenue, the better your rate will be.

A working capital loan or a business line of credit from Backd could get you both the funding and the flexibility that you need. Backd does a great job at keeping the business in control of the loan, and works to create a unique loan tailored to your specific business. It takes just a few minutes to apply, so Backd is worth looking into if you need a large loan amount in a short amount of time.
SMB Compass

SMB Compass - Best for Large Loan Amounts

Interest Rates
Starting at 7.99%
Loan Amounts
$10K - $10 million
Min. Monthly Revenue
Key Features
  • Loans up to $10 million
  • Min. credit score: can go as low as 550 for certain loans
  • Min. time in business: 1+ years in business, no startups
  • Funding times: 5 to 7 days for term loans and 24 - 48 hours for line of credit
  • Flexible terms: 2 – 10 years for term loans
  • Interest Rates: starting at 8.99% for term loans
  • Applying does not impact credit score
  • Nine loan products to choose from
Pros & Cons
  • Low, competitive rates
  • Large loan amounts
  • Loan terms up to 25 years
  • Excellent customer service
  • Poor credit not accepted
  • Not available in all states
  • Must be in business at least one year
  • High revenue requirements

Running a convenience store comes with many expenses, including paying rent or a mortgage, paying employees, purchasing products and inventory, buying equipment, and more. If you need to renovate your store or simply have extra working capital on hand, SMB Compass may be able to help. The lender offers nine different types of loans, ranging from lines of credit to asset-based loans. Rates are competitive and terms are flexible. To qualify, you’ll ideally have a credit score of 650 or higher, be in business for at least one year, and have $20,000 or more per month in revenue. 

Main Features

SMB Compass offers nine different types of small business loans to borrowers, including those running a convenience store. Their mission is to make loans more accessible to small business borrowers by providing cost-effective and flexible lending solutions. SMB Compass business loans range from $10,000 to $10 million with terms up to 25 years. Rates start at 7.99% for qualified borrowers. The lender has currently provided more than 1,200 U.S. businesses with more than $250 million in financing. To apply, simply fill out their easy online application. It takes just a few minutes and will not impact your credit score. If approved, funding can be dispersed within 24 hours.

Qualifications are stricter with SMB Compass, but their loans are bigger (up to $10 million), have more flexible terms, and offer more competitive rates when compared with other lenders. Customer service is excellent; so if you aren’t sure what type of loan would be best for you, contact a representative today to have them walk you through the process.
fora financial logo reviewed on

Fora Financial - Best for Merchant Cash Advance

Factor Rate
Loan Amounts
$5K-$1.4 million
Min. Monthly Revenue
Key Features
  • Min. time in business: 6 months
  • Min. credit score: 550+
  • Borrow up to $1.4 million
  • Factor rate from 1.15 to 1.40
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Pros & Cons
  • 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
  • High interest rates
  • Charges an origination fee of 1% to 6%
  • A borrowing fee may also apply

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.


Main Features

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.

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.
biz2credit review

Biz2Credit - Best for Term Loans

Interest rates
Starting at 7.99%
Loan Amounts
$25K to $500K
Min. Annual Revenue
Key Features
  • Working capital up to $2 million
  • Term loans up to $500,000
  • Term loan interest rate starts at 7.99%
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • Straightforward application process
  • Generous borrowing limits
  • Competitive interest rates
  • Flexible loan repayment terms
  • Various loan types available
  • High credit score required for application
  • Strict business eligibility requirements
  • Loan origination fee may apply

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.


Main Features

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.

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.

Credibly - Best for Business Expansion Loans

Interest Rate
Loan Amounts
Up $250K
Min. Annual Revenue
Key Features
  • Min. Credit Score: 550+
  • Min. Time in Business: 6 months
  • Borrow up to Up to $250,000 in term loans
  • Borrow up to $400,000 in working capital
  • Term loan rates range between 8-25%
  • Working capital factor rate starts at 1.09
  • Simple application process
  • As soon as same day funding
  • Open to high-risk industries
Pros & Cons
  • 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
  • Loan qualifications not published
  • APRs can be high for low credit borrowers
  • Origination and other fees may apply

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. 


Main Features

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. 

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.

Main Features of The Best Convenience Store Loans

National Funding4.1
Fora Financial4
  • Min. Credit Score - 500
  • Min. Time in Business - 6 months
  • Min. Annual Revenue - $180,000
  • Loan Amount - Up to $400,000
  • Interest Rate - Factor rates starting at 1.15

How to Choose The Best Convenience Store Loan

  • 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.


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. The second hottest sellers are beer, ale, and alcoholic cider, which bring in over $23 billion per year. Even hot dispensed drinks sell well, with convenience store sales reaching $5.78 billion during 2020.

Convenience Store Industry Outlook and Areas of Growth

Americans are busier than ever. And while that may be bad news for our schedules, it’s good news for convenience store owners; the busier we are, the more likely we are to seek out convenient ways to get the products we need. That’s one factor that makes the industry outlook for convenience stores so promising. In fact, the convenience store market is expected to grow by 2.4% in 2022 alone, with the greatest area of growth predicted to be in urban areas.


What are the Costs of Running a Convenience Store?

If you’re considering buying a convenience store but aren’t sure how much capital you’ll need, here’s a quick guide to help you get started.

Convenience Store Start-Up Costs

  • Leasing the Appropriate Space: One of the first expenses you’ll need to cover is the cost of commercial space. While leasing is certainly more affordable than purchasing, you’ll still need to put down a security deposit, which could equal up to $8,000.
  • Remodeling the Interior: Assuming that the commercial space you’re leasing isn’t already designed for a corner store, you’ll need to factor in funds to redo the interior; this could run you up to $10,000.
  • Equipping the Store: You’ll also need to purchase a wide range of equipment for your convenience store, including commercial display cases, refrigerator units, shelving, beverage dispensers, hot food holders, and microwaves. This will likely cost you $20,000 to $30,000 or more.
  • Purchasing Initial Inventory: Once you have your shelving, display cases, and dispensers ready, you’ll need products to fill them with, which can cost around $15,000
  • Acquiring the Required Licenses and Permits: You’ll need to get the proper licenses and permits to open your convenience store; these are especially essential since you’ll be selling alcohol and tobacco products. Overall, these costs should run you $2,500.

On-Going Costs for Convenience Store Operation

  • Making monthly lease payments: You’ll need to make monthly lease payments, which could total between $6,000 and $10,000 depending on the size of your convenience store and its location.
  • Paying utilities: You’ll also have to factor in utility payments, which can reach $1,000 per month.
  • Marketing Your Store: Don’t forget to let the world know you’re in business; you should budget around $1,000 per month in marketing costs.
  • Replenishing stock: Every month, you’ll need to replenish stock that’s been purchased, which can run anywhere from $5,000 to $8,000 per month.
  • Compensating employees: You won’t be running the store yourself, which means you’ve got to pay employee wages; these can total between $10,000 and $15,000 per month, depending on how many workers you hire and their hourly pay.


How Can You Use Convenience Store Loans?

If you want to buy a convenience store and you’re wondering how financing options can be utilized, keep reading; in this section we’ll discuss some of the most common uses for convenience store loans.

  • Real Estate: Whether you’re buying or leasing real estate for your convenience store, business loans can be used to help you cover the cost of acquiring the space.
  • Franchise Fees: Becoming part of a franchise can help your convenience store achieve instant recognition and bring in more customers. This does cost money, however—around $25,000 upfront—but you can borrow capital to cover the payment.
  • Equipment: Another common usage for loans is equipment; you have to buy a lot of refrigerator cases, product shelving, drink dispensers, and cash registers to open a convenience store.
  • Expansion: Experienced convenience store owners often take out loans to help them build another store or expand their current business.
  • Inventory: It’s also common to use borrowed funds to cover one of the biggest ongoing expenses convenience stores incur—the cost of inventory.
  • Marketing: While you might like to think people will flock to your store as soon as it opens, the reality is you’ll need to advertise your store to ensure success. Thankfully, you can hire a marketing firm using convenience store loans.
  • Day-to-Day Expenses: Borrowed funds can also be used to cover the day-to-day costs of doing business and to pay for unforeseen emergency expenses, like replacing a broken window or fixing a failing air conditioner.


How to Qualify for a Convenience Store Loan?

While it’s not possible to guarantee you’ll successfully qualify for a loan, there are steps you can take to improve the chances of being approved. They are:

  • Have a Business Plan: The first thing you need to do is to create a business plan. This step is especially important for newcomers who want to buy a convenience store and secure funding, but they’re not sure how. By drawing up a business plan, you’re creating a road map to guide the creation and growth of your business; this also signals to lenders that you’ve thoughtfully considered the challenges associated with buying a convenience store and come up with solutions.
  • Track Your Revenue and Expenses: Once you open your convenience store, you need to keep track of all your revenue and expenses; you’ll be required to submit these financial documents to lenders demonstrating your ability to repay loans.
  • Pay Your Debts on Time: One of the key qualifications for a corner store loan is a good credit score, which comes from paying your debts on time. Though financing is available with bad credit, your chances of being approved improve the higher your score is.
  • Know Your Needs: If you want to be approved for a loan, it’s vital to know exactly what you’ll be using the funds for; this is a question you’ll likely be asked during the loan application process. If you’re purchasing equipment, get estimates before applying to increase the odds of approval.
  • Apply Selectively: It’s unlikely that you’ll meet the qualifications for every convenience store loan on the market. Check the requirements for credit score, time in business, and annual revenue then apply only if you meet the minimum qualifications.



Owning and operating a convenience store is an exciting opportunity; the market for corner stores has been growing steadily and shows no signs of stopping! Unfortunately for store owners, the typical profit margin at corner stores is rather slim, which makes it easy to run into cash flow problems. Thankfully, there are many convenience store loans on the market to make sure capital is available whenever you need it.

About the Author

Christi Gorbett

Christi Gorbett

Freelance Content Marketing Writer

Freelance Content Marketing Writer specializing in finance, personal development, education, marketing, web development, food & beverage manufacturing, pet, and contracting/home improvement niches.

More about me

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