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Gas Station Loans: Best Business Financing Options in 2024
If you own a gas station or have plans to open one, gas stations loans can help you secure the capital you need to succeed. Below are the best gas station loans to help cover operating expenses, purchase inventory, or expand your gas station.
Written by:Anna Baluch
Reviewed by: Sarah Brooks, Personal Finance Writer and Editor
Since many customers pay for gas station purchases in cash, it can be difficult to document and prove your total income. In most cases, you’ll need to depend on your tax returns to qualify for a small business loan. Also, if your financial documents show your sales are plummeting or you’re struggling with cash flow, traditional lenders might not approve you.
To make your life easier, our experts rounded up a list of the best gas station loans available today. It can give you an idea of what types of lenders and loans are more likely to provide you capital for your venture.
Top Picks for Best Gas Station Loans
- Lendzi: Best for Businesses With High Revenue
- Backd: Best for Cheapest Interest Rates
- SMB Compass: Best for Fast Funding Times
- Bluevine: Best for Gas Station Start Up Cost
- National Funding: Best for Gas Station Equipment Financing
- Biz2Credit: Best for Working Capital and Payroll Expenses
- SmartBiz: SBA Loans for Gas Stations
While it’s difficult to find gas station loans, it’s not impossible. When you shop around, be sure to compare products so you can make the best choice for your unique gas station business.
In this review, we highlight each the rates, fees and term 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.
Gas Station Loans: Overview of the Best Options
Best Overall
Lendzi: Best for Businesses With High Revenue
Factor Rate
Starting at 1.10
Loan Amounts
Up to $4 million
Min. Annual Revenue
$180,000
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
- Easy online application
- Fast funding times
- Multiple loan options
- Competitive rates
- Bad credit is accepted
- Excellent customer reviews
- Must be in business at least six months
- Annual revenue requirements are high
Overview
Lendzi specializes in getting funding for those with high revenue that have been denied a loan elsewhere. However, they are also a great option for gas station businesses with great credit who are looking for competitive rates, excellent customer service, and multiple loan options. Basically, you can’t go wrong with a gas station loan from Lendzi.
Main Features
Working capital loan from Lendzi. These loans require a credit score of just 500 and they allow you to borrow up to $400,000. Terms range from three to 15 months and factor rates start at just 1.15. Another good option is equipment financing, which requires a credit score of 550 but lets you borrow up to $2 million. Because the equipment acts as collateral, you can typically get a decent interest rate with this type of loan even if you have bad credit.
To qualify, Lendzi does prefer six months of business history and an annual revenue of $180,000. Applying takes just a few minutes and once you submit your application, a representative will contact you to discuss your loan options. Together, you can decide which type of loan is best for your gas station business.
Lendzi is one of the best lenders out there to do business with. They have more than 2,000 5-star reviews on Google, TrustPilot, and Better Business Bureau, offer competitive rates and flexible terms, and are open to borrowers with bad credit or have been denied a loan elsewhere. Simply fill out an application to get the process started.
Backd: Best for Cheapest Interest Rates
Factor Rate
Starting at 1.10
Loan Amounts
Up to $2 million
Min. Annual Revenue
$200,000
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
- Instant lending decisions
- Fast funding times
- Large loan amounts up to $2 million
- Flexible payment options
- No collateral required
- Startups will not qualify
- Rates and fees not disclosed on website
Overview
Backd offers working capital loans up to $2 million, making them our top pick for gas station businesses that need a large sum of money to expand their business, renovate their existing gas station, or fund an expensive project. Backd was founded in 2018 in Austin, Texas and has made it their mission to give more small businesses access to funding. Backd understands that traditional lenders can take months to approve your loan, and they get that you may not have that type of time when running a business.
Main Features
Backd working capital loans range from $10,000 to $2 million and can be used for any gas station business expense. Terms are up to 16 months and no collateral is required. Payments are made daily, weekly, or semi-monthly. In addition to working capital loans, Backd offers a business line of credit from $10,000 to $750,000. A line of credit is best for businesses who regularly need access to funding. To qualify, you must be based in the U.S., have a business bank account, be in business for at least two years, have $300,000 or more in annual revenues, and 640+ FICO score.
If you need a loan for your gas station business and have been denied elsewhere, give Backd a try. The application takes just a few minutes to fill out, only a soft-pull is done on your credit during the application phase, and you’ll receive a lending decision instantly. From there, you can review rates and fees and decide whether or not you’d like to move forward.
SMB-Compass
Interest Rates
Starting at 7.99%
Loan Amounts
$10K - $10 million
Min. Credit Score
650+
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
Overview
SMB Compass offers nine different types of small business gas station loans to borrowers. 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.
Main Features
If you need a gas station loan quickly, SMB Compass has some of the fastest funding times in the industry. The majority of their products can be funded within one to two business days from loan approval. Types of loans offered by SMB Compass include business lines of credit, business term loans, equipment financing, SBA loans, invoice factoring, asset-based loans, and more. Whether you need a small loan to pay for working capital expenses or a large loan to purchase a new gas station or pay off existing debt, SMB Compass can provide you with the loan you need. To qualify, you’ll need to be in business for at least one year, have a minimum credit score of 650, and have $20,000 per month in revenue.
SMB Compass is a great choice for gas station owners who meet their lending requirements. They offer a variety of loan products with fast funding times, competitive rates, and excellent customer service. If you aren’t sure what type of loan you need, a representative will walk you through the process and help you decide. Contact SMB Compass today to get started!
Bluevine: Best for Gas Station Start Up Cost
Interest rates
Starting at 6.2%
Loan Amounts
Up to $250K
Min. Annual Revenue
$480,000
Key Features
- Funding up to $250,000
- Min. credit score: 625
- Min. time in business: 6 months
- Interest rates as low as 4.8%
- Loan Repayment 6-12 months terms
- Quick and simple application
Pros & Cons
- Leninant credit requirements
- Competitive interest rates
- Fast funding times
- Not available in every state
- Short repayment terms
Overview
Bluevine is a financial technology company that specializes in business lines of credit. With a line of credit, you can borrow money when you need it up to your set credit limit. You only pay interest on the amount you borrow each time. If you’re unsure of exactly how much funding you need for your gas station, this loan option should be on your radar.
Main Features
Lines of credit from Bluevine range from $5,000 to $250,000 with a starting APR of 4.8%. The term length is rather short, ranging from six to 12 months. Lines of credit are best used to cover gaps in revenue or to cover one-time expenses, such as purchasing new equipment or expanding your business.
To qualify for a line of credit from Bluevine, you’ll need a minimum credit score of 625, a minimum monthly revenue of $10,000, and a business history of at least six months.
If flexible financing is important for your gas station business, a Bluevine line of credit is a smart choice. Bluevine offers competitive rates, excellent customer service, and a simple application that can be completed in just a few minutes.
National Funding: Best for Gas Station Equipment Financing
Factor Rate
Starting at 1.10
Loan Amounts
Up to $500K
Min. Annual Revenue
$250,000
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
- Same-day funding for qualified borrowers
- Poor credit accepted
- Minimal paperwork required
- Fees may be high
- Equipment used as collateral
Overview
National Funding is a small business loan specialist with a focus on borrowers with less than ideal credit. Since you’ll need to buy gas pumps and other equipment for your gas station business, its equipment financing option is worth exploring.
Main Features
Equipment loans from National Funding go up to $150,000 with terms ranging from two to five years. Repayments are made monthly, and you can get a discount if you pay the loan off early. If you don’t need to purchase equipment, National Funding also offers traditional small business loans ranging from $5,000 to $500,000 that you can use for your gas station business.
Eligibility criteria includes a minimum credit score of 575 and a business history of six months or more. You must also present an equipment quote from a vendor during the application process.
National Funding offers equipment loans and traditional small business financing to borrowers with poor credit. If you’ve been in business for at least six months, National Funding could be a great fit for financing your gas station business.
Biz2Credit: Best for Working Capital and Payroll Expenses
Interest rates
Starting at 7.99%
Loan Amounts
$25K to $500K
Min. Annual Revenue
$250,000
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
- Fast funding times
- High borrowing limits
- Quick application process
- Strict eligibility criteria
- Extra fees may be charged
Overview
Biz2Credit offers three different types of financing for gas station business owners: working capital loans, term loans, and commercial real estate loans. Term loans tend to be their most popular product, followed closely by working capital loans. Both loans can help you fund everyday expenses related to your gas station business, such as inventory, payroll, and utilities.
Main Features
Biz2Credit working capital loans range from $25,000 to $2 million with payments made daily, weekly, or biweekly. Term loans max out at $500,000 and must be repaid within 12 to 36 months. Commercial real estate loans allow you to borrow up to $6 million, but you must already own your business and land. These loans are ideal for those looking to expand or renovate.
For a chance at approval for a working capital loan, you need a minimum credit score of 575, at least $250,000 in annual revenue, and a six-month business track record. For term loans and commercial real estate loans, the minimum credit score required is 660 and you must be in business for at least 18 months.
If you have good credit and need cash to pay for the day-to-day costs of running your gas station, a working capital loan from Biz2Credit may be a good option.
SmartBiz: SBA Loans for Gas Stations
Interest Rate
7.5% - 10.29%
Loan Amounts
$30K - $350K
Min. Annual Revenue
$50,000
Key Features
- SBA 7(a) loans up to $350,000
- SBA commercial real estate loans up to $5 million.
- Min. Credit Score: 660
- Min. time in business: 2 years
- Loan Repayment 10 - 25 years
- SBA 7(a) loan rates: 10.75%-11.75%
- SBA Commercial real estate loan rates: 5.50-6.75%
- Receive multiple loan offers
Pros & Cons
- Low interest rates
- Long repayment terms
- High borrowing limits
- Long application process
- Additional fees may be charged
- Good credit score required
Overview
SmartBiz aims to deliver affordable lending to small businesses in an effort to support local economies. It’s an SBA-approved lender, meaning it offers SBA loans that are partially guaranteed by the U.S. Small Business Administration. There are several types of SBA loans which come with low rates and lengthy repayment terms of up to 25 years.
Main Features
SmartBiz SBA loans range from $30,000 to $5 million with repayment terms between 10 and 25 years. Interest rates range from 7.5-10.29%. You can use SBA loans for any type of business expense, such as purchasing inventory, consolidating debt, remodeling your gas station, or paying for day-to-day expenses.
To get approved for an SBA loan from SmartBiz, you must have a credit score of at least 660 and a business history of two years or more. While specific income requirements are not mentioned, you do need to have a positive cash flow and no recent bankruptcies.
An SBA loan from SmartBiz is an excellent choice if you’ve been in business for at least two years and have a good credit score. Your total cost of borrowing with this type of loan will be much lower than traditional small business loans, so if you qualify, it’s worth it to apply.
Main Features of The Best Gas Station Loans
Lendzi4.5
Backd4.5
SMB Compass4.5
Bluevine4
National Funding4.1
Biz2Credit4
SmartBiz3.5
- 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 Gas Station Business Loan
- Loan Features: Loan features include loan terms, loan amounts, and repayment plans. Some lenders are known for lengthy terms, high amounts, and flexible repayment options, which are ideal if you’re a gas station owner.
- Application process: If you’re running a gas station, there’s a good chance you’re busy and prefer an easy application process with fast funding. You might also appreciate lenders who offer prequalification so you can check your offers without any impact to your credit score.
- Interest rates and fees: Since interest rates and fees will play a vital role in the overall cost of your gas station loan, financing with lower rates and minimal to no fees is your best bet.
- Qualification process: While some lenders have rigorous credit, annual revenue, and business history requirements, others are more lenient and willing to work with newer gas station owners with lower credit scores and less annual revenue.
- Customer support: Customer support can come in many forms: phone, email, live chat, and website tools, like a robust FAQ page and product guides.
- Online user reviews: Reviews and ratings on independent, third-party sites like Trustpilot and Better Business Bureau (BBB) reveal the reputation of the gas station lenders.
- Perks and Bonuses: Extras like hardship assistance, business advising, and credit score monitoring can make a gas station loan more valuable.
What Are the Costs of Running a Gas Station?
Opening a gas station comes with a high financial barrier to entry. At a minimum, you should secure $300,000 in financing to get your venture up and running. The funds will need to be used to buy the location, business insurance, registration, licenses and permits, marketing materials, gas, payroll and more.
The ongoing costs of your gas station will include utilities, payroll, and inventory. You’ll likely pay anywhere from $50 to $70 per 20-gallon barrel of fuel. Of course, this figure can easily increase or decrease depending on the environment. In addition, you may be on the hook for franchise royalties and fees.
Types of Loans Available to Gas Station Owners
There are a number of loans you can take out as a gas station owner, including:
- Lines of Credit: A business line of credit works a lot like a credit card: you can withdraw as much or as little as you’d like up to a set credit limit.
- SBA Loans: SBA loans come with low interest rates and long repayment terms. The SBA 7(a) loan is ideal if you’d like to buy or expand your gas station, as you may get approved for up to $5 million.
- Equipment Loans: If you need funding to purchase or lease new or used equipment for your gas station, equipment financing can help you out.
- Merchant Cash Advance: A merchant cash advance can be a smart choice if your gas station has a high volume of credit card sales.
- Term Loans: Term loans provide you with a lump sum of money upfront that you repay over time via fixed monthly payments or installments.
How to Use Gas Station Loans
While gas station business loans can be used for anything related to your business, the most common uses for gas station loans include:
- Working Capital: Working capital refers to the ongoing, day-to-day expenses you may incur to run your gas station. Some examples include rent, utilities, payroll, insurance, fuel, and maintenance.
- Expansion: If you own one successful gas station, you might want to expand your business. With some help from a loan, you can move to a larger location, open additional gas stations, buy a gas station that already exists, and hire additional employees.
- Renovations: To boost sales, you may want to renovate your gas station so that it’s a clean, welcoming space for customers. If your gas station is outdated, you can use a loan to cover the cost of renovations.
- Inventory: If your gas station sells convenience products like snacks and drinks in addition to gas, a loan can ensure you always have enough inventory at your disposal. Just make sure you do some research and find out exactly how much inventory you need.
- Upgrade Equipment: It’s important to keep your storage tanks, fueling systems, point-of-sale systems, and other equipment up-to-date. A gas station loan can help you do just that.
- Emergencies: Since emergency expenses are bound to pop up when you least expect them, a gas station loan is a great way to gain some peace of mind.
How to Qualify for a Gas Station Business Loan
To increase your chances of getting approved for a gas station loan, be sure to:
- Check your credit: Make sure you know where you stand credit wise. Visit AnnualCreditReport.com to pull free copies of your reports from Equifax, Experian, and TransUnion. Dispute any errors or inaccuracies you find, as they may bring down your credit score.
- Solidify your business plan: Most lenders will ask to see your business plan so they can learn more about your gas station and find out what you plan to do with the loan proceeds. Do your best to provide them with a plan that’s clear, compelling, and professional.
- Shop around: Not all gas station loans are created equal. That’s why you should do some research and only apply to options with qualification requirements that you meet. There’s no point in applying for a loan that requires good credit if your credit is fair or poor.
- Develop relationships with lenders: Sometimes, it’s all about who you know. Take the time to build relationships with lenders long before you apply for their gas station loans.
How to Apply for a Gas Station Loan
Most companies that offer gas station loans will have you fill out a preliminary application. From there, you may be contacted by a representative from the lender and asked for additional information and paperwork. Here are some tips to keep in mind when you apply for a gas station loan.
Gather Financial Documents
In most cases, lenders will want to see a variety of financial documents, such as:
- Recent balance sheets
- Tax returns from the past few years
- Profit and loss statements from the last three years
- Escrow directions, including closing date and escrow agent contact details
- Details of any assets involved in the loans, such as equipment or receivables
We recommend you have these documents gathered and on-hand, which will make the approval and funding process much smoother.
Find the Right Loan
To start your search for the best gas station loan, visit our list of the best gas station loans above. Explore each lender’s website and don’t hesitate to contact them directly if you have any questions. Once you compare rates, terms, fees, and perks, you’ll be able to choose the right one.
Fill Out the Application
Most lenders will allow you to apply for a gas station loan online. While a merchant cash advance comes with a quick, easy application process, applying for an SBA loan, for example, will take more time. Before you submit any application, double check your work for errors to avoid delays with approval and funding.
Closing Thoughts
Opening a gas station can be an exciting, lucrative venture. After all, gas stations are always in demand. As long as you have sufficient capital at your disposal, you can succeed, especially if you earn additional revenue from convenience store items, car washes, and other extras. Apply for one of the above-mentioned gas station loans today to help with your business financing needs.
*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
About the Author
Written by: Anna Baluch
Freelance copywriter who enjoys writing for large publications as well as startups, small to medium sized businesses. Anna Baluch is a personal finance writer with over 7 years of experience covering topics related to mortgages, debt management, student loans, personal loans, and more.
More about me
Reviewed by: Sarah Brooks
Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.
More about me
