Finimpact

Best Self Storage Business Loans

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

Self-storage business owners incur a wide range of costs. 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 self-storage financing available to help you manage the costs of running your business. This detailed guide will help you assess the best options to find one that meets your needs.

Our Top Picks for Best Self Storage Business Loans

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
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
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 Self-Storage Loan

To find the best loans for your self-storage business, you’ll need to do a bit of research and compare lenders. Our experts recommend using the following criteria to help select the right loan; these are the same factors they used to provide the recommendations found in this article:

  • 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.

Best Self Storage Loans for 2022 - Full Overview

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

1.Fora Financial - Best for Short-Term Loans

Short-term loans through Fora Financial are an excellent financing option for self-storage facilities that need cash fast. The application process is simple and requires little documentation with disbursements arriving as soon as 24 hours after approval. These are a great choice if you encounter unexpected expenses, like replacing broken rolling doors in your storage facility.

Pros
Easy application with few documents required
Fast funding in as little as 24 hours
Provides loans to borrowers with poor credit
Low $12,000 annual revenue requirement
Cons
Charges borrowing and origination fees
Interest rates not disclosed up front
APRs may be higher than other lenders
Limited repayment terms


Fora Financial offers short-term self-storage loans in amounts ranging from $5,000 to $500,000. Loan repayment must be made within four to 15 months. The APRs for these loans aren’t publicly disclosed, so they may be higher than average.

Fora Financial makes these loans available to self-storage owners with poor credit; you only need a credit score of 500 to apply. The requirements for annual revenue and business history are also easy to meet—you must be in business for six months and earn $12,000 on average per year to qualify.

The Bottom Line

Short-term self-storage loans through Fora Financial are a great option for owners who need a quick infusion of cash, especially if they have limited annual revenue or a low credit score. Funds are disbursed quickly, making these the ideal option if you need to pay for unexpected expenses, like replacing the environmental control system in your storage units.

2. Biz2Credit - Best for Commercial Real Estate Loans

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.

Pros
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
Cons
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 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.

The Bottom Line

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.

3. Credibly - Best for Long-Term Business Expansion Loans

If you’re looking to get a loan to expand your self-storage business, Credibly is a good place to start. They offer storage unit financing in amounts anywhere from $150,000 to $5 million with repayment terms between three to ten years, making these an excellent solution if you plan to build more units to expand your already-thriving business.

Pros
Simple and straightforward application process
Offers various types of loans
High borrowing limits
Some loans available to borrowers with poor credit
Cons
APR may be high
Criteria for business expansion loans not divulged
Lender typically charges an origination fee


Credibly offers a wide range of self-storage loan options, including a business line of credit, working capital loans, business expansion loans, and SBA loans. While all of these options are useful, Credibly’s business expansion loans are the best choice for experienced self-storage owners who are looking to further develop their business.

Business expansion loans can be taken out in any amount between $150,000 and $5 million. APRs for these loans range from 8% to 25% and must be repaid within three to ten years. Though the minimum credit score, time in business, and annual revenue requirements for other Credibly loans are relatively low, the qualifications for business expansion loans are not publicly available; check with the lender for more information.

The Bottom Line

If you already run a successful self-storage company and want to expand your business, this is the perfect loan for you. Whether you’re adding more units, reconfiguring existing ones, updating your security system, hiring more staff, or building a new facility, you can borrow as much as you need up to $5 million and have up to ten years to repay the loan.

4. Torro - Best for Start Up Capital Loans

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.

Pros
Willing to lend to new companies
Access to multiple lenders
No limits on loan usage
Fast application, processing, and disbursement
Cons
Low maximum loan amount
APRs may be higher than average
Loan origination fee charged
Good credit score required


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.

The Bottom Line

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.

5. BlueVine - Best for Line of Credit

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.

Pros
The application process is easy to complete