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Self Storage Financing: Best Business Loan Options to Consider

Self-storage units are a lucrative business but they’re notoriously expensive to build or acquire and require regular maintenance to keep renters happy and their stuff safe. Thankfully, there are many loan options available so you can successfully finance your self-storage business.

self storage 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.

While self-storage construction can be expensive, that’s just one of many expenses that needs to be covered. Once you’ve built the facility, you must make sure that everything stays in working order to keep your clients’ belongings safe. That includes maintaining and replacing damaged rolling doors, climate control systems, security cameras, and protective fencing, just to name a few.

The good news is there’s a variety of small business loans for self-storage facilities to help you manage the costs of running your business. This detailed overview will help you assess the best options to find one that meets your needs.

Top Picks for Best Self Storage Business Loans

Top Picks for Self Storage Financing Options

To find the best financing option for your self-storage business, you’ll need to do a research and compare lenders. In this review, our experts highlight the terms, rates and fees 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.


Self Storage Financing: Full Overview of The Best Options

In this section, you’ll find detailed descriptions on some of the best options for self-storage financing.

Best Overall
Backd business loans

Backd - Best for Working Capital Loans

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 lending decisions and funding times
  • No collateral required
  • Flexible payment options
  • Large loan amounts
  • Must be in business at least one year
  • Not all industries qualify
  • Rates and fees not disclosed

Backd offers working capital loans to businesses in the self-storage industry. Backd was founded in 2018 with a mission to provide more funding to small businesses. So far, they’ve succeeded and have helped more than 10,000 businesses acquire the funding they need. The unique thing about Backd is they tailor their loans to each business, allowing you to remain in control the entire time.


Main Features

Backd working capital loans range from $10,000 to $2 million, making them ideal for self-storage businesses looking to expand or renovate. Terms are up to 16 months, and payments are made daily, weekly, or semi-monthly. If you need access to funds regularly, Backd also offers a business line of credit. These range from $10,000 to $750,000 and come with unlimited terms. Neither option requires collateral.

To qualify, you need to have $300,000 in annual revenue, be in business for at least two years, and have 640 or higher credit score. You also must have a business bank account.

Backd was created specifically to give small businesses more access to funding. If you’ve been denied elsewhere, give Backd a try. It takes just a few minutes to fill out the application and you’ll receive a lending decision instantly. From there, you can decide whether or not you’d like to move forward with the loan.

National Funding - Best For Equipment Loans

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
  • Fast funding: You can receive your money via direct deposit within 24 hours.
  • Early repayment discount: With a working capital loan, you’ll earn a 7% discount on your remaining balance if you pay it off in full within the first 100 days.
  • No collateral needed: You won’t have to risk any collateral, like a company vehicle or business savings account.
  • Daily or weekly repayments: National Funding requires repayments every day or week on its working capital loans.
  • High annual revenue: National Funding only lends to self storage businesses who can prove an annual revenue of $250,000.
  • Personal guarantee required: While you won’t need collateral, you will have to personally guarantee your loan.

Equipment loans from National Funding can help keep your self storage business running smoothly. You may get approved for up to $500,000 and cover the cost of portable containers, information management equipment, climate control equipment, and other types of storage equipment.


Main Features

National Funding’s equipment loans range from $5,000 to $500,000 with repayment terms between four months and two years. The pay rate starts at 1.10. To take out a working capital loan, you’ll need a minimum credit score of 600, a business track record of at least six months, and $250,000 or more in annual revenue. 

If your self storage business has been around for quite some time and you could use some cash to pay for day-to-day expenses, a working capital loan from National Funding is worth exploring. You may get a discount if you repay your loan within 100 days and won’t have to put any collateral on the line.
gokapital review

GoKapital - Best for Multiple Lending Options

25% - 75%
Loan Amounts
$10K to $250K
Min. Annual Revenue
Key Features
  • Borrow up to $250,000
  • Loan Terms 2 to 10 years
  • Small business term loans APR. 25% - 75%
  • Wide range of loan offers
  • Simple application process
  • Instant pre-approval
  • Min, credit score: 500
  • Min. time in business 2 years
Pros & Cons
  • Easy online application
  • Multiple lending options
  • Early payment discounts
  • Poor credit accepted
  • Available in all 50 states
  • High loan amounts
  • High annual revenue requirements
  • High rates for those with poor credit
  • Some loans take longer to receive funding

GoKapital was founded in 2013 and offers six different types of loans, in addition to commercial loans. The online application takes just a few minutes to fill out and you should receive a lending decision within 24 hours. If you decide to move forward with the loan, funds can be in your account as soon as the same business day.


Main Features

GoKapital offers business term loans, business lines of credit, merchant cash advances, equipment financing loans, startup loans, and SBA loans ranging from $5,000 to $5 million. Terms depend on the type of loan you choose, but most range from one year up to 25 years. Rates start at 5% for SBA loans and 25% for business term loans. Of course, the higher your credit score, the better the rate you’ll receive.

To qualify for a loan from GoKapital, you need to have a minimum credit score of 500, one year in business history, and $240,000 or more in annual revenues. Startup loans require just $50,000 in annual revenues, though, so that is worth looking into if your income isn’t as high as you’d like. Funds can be used to update your self storage space, pay for marketing expenses, purchase a new location, and more.

GoKapital wants to help your self storage business succeed. Whether you need just a few thousand to hire additional staff or you’re in need of millions for a commercial property overhaul, GoKapital is worth considering.
biz2credit review

Biz2Credit - Best for Commercial Real Estate 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
  • The application process is easy to navigate
  • Fast loan disbursement within 72 hours of approval
  • Multiple loan types available
  • High maximum loan amount of $6 million
  • Strict requirements for loan eligibility
  • Limited repayment terms
  • Lender charges origination fees of 1% to 6%
  • APRs may be higher than other options

Biz2Credit offers a variety of options including commercial real estate loans that are perfect if you’re adding new bays at your current location or building a new storage site. You can borrow large amounts—up to $6 million—but eligibility requirements are strict; you must be in business 18 months, earn $250,000 in yearly revenue, and have a credit score of 660 to apply.


Main Features

Biz2Credit offers self-storage construction loans in any amount between $250,000 and $6 million. Borrowers must repay these loans within one to three years at APRs starting at 10%. You may also be charged an origination fee between 1% and 6% of the original loan amount.

To qualify for a Biz2Credit commercial real estate loan, you’ll need to have $250,000 in annual revenue, a 660 credit score, and 18 months in business. Biz2Credit also offers term loans and working capital loans, though the qualifications vary slightly; these are a good fit if you need to cover staff costs, install a new security system, or pay for unforeseen expenses.

Biz2Credit’s self-storage construction loans are perfect if you’ve been running a successful storage business for more than a year and a half and want to expand your current facility or build a new one. Loan limits are high—up to $6 million—but you’ll need a high credit score of at least 660 to qualify.
Torro review

Torro - Best for Start Up Capital Loans

Up to 36%
Loan Amounts
$25K - $125K
Min. Annual Revenue
Key Features
  • Borrow up to $575,000
  • Loan Repayment 12 - 48 months terms
  • Hundreds of financing options
  • Use the loan for any purpose
  • Fast process
  • Min. credit score: 700
  • Min. time in business: under 6 months
Pros & Cons
  • Willing to lend to new companies
  • Access to multiple lenders
  • No limits on loan usage
  • Fast application, processing, and disbursement
  • Low maximum loan amount
  • APRs may be higher than average
  • Loan origination fee charged
  • Good credit score required

There are few financial institutions willing to lend money to companies that are just starting out; most want to see a proven track record of success before offering a loan. Torro is an exception—they’re one of the few lenders who provide start-up capital loans to new businesses, making these the perfect option if you’ve just opened your self-storage unit and need some cash to keep growing.


Main Features

Unlike other lenders, Torro offers start-up funds to newly-founded companies. These loans can be taken out in any amount up to $100,000 and can be used for any business need. Repayment terms range from 12 to 48 months with APRs up to 36%. A loan origination fee of 5% is also charged for start-up loans.

To qualify for a start-up loan through Torro, you should be earning roughly $5,000 per month. While it’s likely you can find a start-up loan with a credit score of 680, for the best loan options your credit score should be at least 700. Torro also offers working capital loans with similar features and requirements.

If you’ve recently opened your storage facility and require additional funds, then a start-up loan from Torro may be exactly what you need. The required time in business is less than six months and funds can be used however you see fit. However, keep in mind that credit requirements are stringent; you need a personal credit score of at least 680 to apply.

Bluevine - Best for Line of Credit

Interest rates
Starting at 6.2%
Loan Amounts
Up to $250K
Min. Annual Revenue
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
  • The application process is easy to complete
  • Funds are received quickly
  • Relatively low credit score requirements
  • Competitive interest rates
  • Repayment must be made in six to 12 months
  • APRs may be high for borrowers with poor credit
  • Unavailable in Nevada or North and South Dakota

A line of credit through BlueVine is a great option for self-storage owners who want ongoing access to cash for unexpected expenses like emergency repairs or renovations. With this type of loan, you’re approved for a specific amount up to $250,000 and can make draws whenever you need to. Meant to be a short-term option, these loans must be repaid within six to 12 months.


Main Features

BlueVine offers a line of credit to self-storage owners in any amount between $5,000 and $250,000. APRs start at 4.8% for well-qualified borrowers with repayment expected in six to 12 months. BlueVine charges a loan origination fee of 1.60% to 2.50% per draw but does not assess any prepayment or maintenance fees.

To qualify for a line of credit through BlueVine, you’ll need to be in business for at least six months. The minimum annual income required is $120,000 and it’s recommended you have a credit score of at least 600.

A line of credit is an excellent choice is you’re looking for flexible self-storage financing. You may be approved for up to $250,000 but need to repay any amount you draw within six to 12 months. That makes a line of credit ideal for when you need to cover unexpected expenses like broken rolling doors, a new keypad entry system, or cracked security cameras.

Main Features of The Best Self Storage Financing Options

National Funding4.1
  • Min. Credit Score - 640
  • Min. Time in Business - 12 months
  • Min. Annual Revenue - $100,000
  • Loan Amount
    • Working  capital loan: $10,000 up to $2 million
    • Business lines of credit: $10,000 to $750,000
  • Interest Rate - Not disclosed

How To Choose the Best Self-Storage Loan

  • Loan Features: Make sure to check the loan features including loan terms, repayment optionality, and loan amounts to find self-storage financing that meets your needs. For example, if you’re building a new self-storage facility and have to borrow several million dollars, you can eliminate lenders that only offer low lending amounts.
  • Application Process: The application requirements vary from lender to lender; some may require a hard credit pull and in-depth financial documentation while others can make an offer with a soft credit pull and basic business information. If you need cash quickly to cover unexpected repairs or operational costs at your storage facility, work with a lender that offers a fast, noninvasive application process and quick disbursement.
  • Interest Rates and Fees: Before applying with a lender, you should have a basic idea of how large of a loan repayment you can afford. The size of your repayment is typically determined by how much you borrow, interest rates, term length, and additional fees. Apply only to lenders whose rates you can afford and avoid those that will strain your budget.
  • Qualification Process: You should also take loan qualifications into account as you evaluate your options; do you meet the lender’s minimum credit score, annual revenue, and business history requirements? If your self-storage unit has only been open for six months and the lender’s minimum requirement is one year, you should look for other options.
  • Customer Support: Having access to customer support is also vital; at some point during the life of your self-storage loan, you’ll probably need assistance. Make sure the lender offers multi-channel access to a live Customer Service Representative plus supplemental information and tools on their website.
  • Online User Reviews: Check customer ratings and reviews, especially on independent sites like Trustpilot. Other borrowers will let you know what to expect from the lender, if they had any issues with their storage unit financing, if they recommend the lender, etc.
  • Perks and Bonuses: You should also take into account any additional perks and bonuses the lender may offer, such as payment flexibility, advanced technology, and advertising transparency. For example, if the lender requires you repay your self-storage loans every week, but you want to pay monthly, consider applying with a different provider.


What Are the Costs of Running a Self-Storage Business?

There are several costs to consider when planning your own self-storage business. including:

  • Land: If you’re starting your self-storage business from scratch (as opposed to purchasing one that’s already in operation) one of the biggest expenses will be acquiring land to build on—this could run you anywhere from $100,000 to $400,000 depending on your location.
  • Construction: Construction costs are another major expense; to build your storage units, you’ll likely need between $1,250,000 and $3,750,000 for a 50,000 square foot facility.
  • Other Construction-Related Expenses: In addition to the cost of construction, you’ll also need to pay related expenses such as engineering and architecture fees, land surveys and soil testing, legal fees, builder’s insurance, and permits. These can add up to around $80,000.
  • Office Equipment: When tallying costs, you should also include any equipment necessary to run your self-storage business, including computers, printers, telephones, filing cabinets, and software, which can reach $2,000 or more.
  • Marketing: Once your facility has been built, you’ll need to advertise your services to the local community to attract customers. This should include a professional website plus ads through either radio, TV, newspaper, mail flyer, or email. Marketing can cost you several thousand dollars, depending on which avenues you select.
  • Operating Expenses: Don’t forget to add operating expenses into your total. This includes things like wages, loan payments, insurance, utilities, maintenance, property taxes, and security, which can add up to $5,000 or more per month.


Types of Loans Available to Self-Storage Facility Owners

Some of the most common types of loans for a self-storage business include:

  • SBA Loans: These loans are backed by the Small Business Administration and often offer low APRs with extended repayment terms; however, applying can be difficult due to a high standard for qualification and required documentation.
  • Commercial Real Estate Loans: The purpose of these loans is to provide financing for the purchase of land and construction of your self-storage unit. Maximum loan amounts are typically high but other features will vary based on the lender and your credit profile.
  • Start-Up Loans: Start-up loans were designed to provide cash to businesses that are just starting out. Because it’s riskier to lend to companies with a limited business history, these may incur higher interest rates.
  • Business Line of Credit: A business line of credit is a great option for self-storage owners who are looking for maximum flexibility; you can draw money against your line of credit for any purpose whenever you need a quick influx of cash.
  • Short-Term Loans: Short term business loans are ideal when you find yourself with unexpected expenses, like emergency repairs. These loans often have high APRs and need to be repaid within the year.
  • Working Capital Loans: Working capital loans are designed to help cover the cost of running your business. These are especially useful whenever you experience unforeseen gaps in your cash flow. Loan features on working capital loans vary by lender, so shop around to find one that best meets your needs.

You can get these loans through several different avenues, including a bank, credit union, or alternative lender. While you may find lower APRs and longer lending terms at banks and credit unions, their loan qualifications are much more rigorous, which can make it difficult to secure the funding you need to build your self-storage business.


How to Use a Self-Storage Financing?

There are various ways you can use financing for self-storage facilities, such as:

  • Acquisition: you can use self-storage financing to purchase a facility that’s already been built and has been running for several years. Though most acquisitions of already-existing storage facilities are done by investment firms, there may be local, independent self-storage units that come up for sale from time to time.
  • Construction: Self-storage financing can also be used if you’re planning on constructing a new facility (as opposed to acquiring a used one). Keep in mind, you’ll need to find a lender that offers high loan limits because construction costs can run into the millions of dollars.
  • Expansion: You can also take out loans to expand your current self-storage business. These loans can cover practically any type of expansion including adding more units, building a new facility, hiring more staff, or improving security features.
  • Renovation: Some of the more common renovations that owners seek funding for are rolling door replacement, reconfiguring storage space, the installation of climate control systems, adding keypad entry, and improving curb appeal.
  • Maintenance: Financing can also be secured to help with maintenance of your storage facility. For example, you may need to patch up cracks in the wall or add a new coat of paint onto the exterior.


How to Qualify for a Self-Storage Financing?

Here are a few tips to improve your chances of qualifying for a self-storage business loan.

  • Know how much money you need and how it will be used.
  • Understand your own credit profile.
  • Decide how much you’re willing to spend in monthly payments.
  • Prepare the necessary documents.
    • A current profit and loss statement
    • Three years of business and personal tax returns
    • A report on occupancy and rental rates
    • A copy of your business plan
    • A market feasibly report if the loan is for new construction
  • Apply for loans that match your needs and qualifications.



Operating a self-storage facility is a lucrative business opportunity that has been increasing in popularity over the past several years. Whether you’re acquiring an already-existing storage unit, building a new facility, or updating your current one, there is a wide range of self-storage financing options available to you. All you need to do is evaluate your options and find the one that best meets the needs of your business.

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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