Gas Station Loans: Even with Bad Credit

by | Jul 11, 2013 | Bad Credit Business Loans

Listen Now

Updated February 23, 2022 – Gasoline is a highly valuable, finite commodity. The price of gas has also never been higher, and continues to rise. The overhead needed to run a gas station is extremely high and owners might have to borrow a lot of money to maintain it which may affect their credit. But, with Small Business Funding, it is possible to receive bad credit service station loans.

Bad Credit Gas Stations Loans And The Hurdles Faced

Traditional banks are very averse to giving out loans to gas station owners, especially ones with bad credit. Because oil is a cash business, it is harder to verify cash flow for gas stations than for other commercial properties like office buildings or apartment rentals. As the price of gas rises the bottom line falls. Banks also do not like to give loans to gas station owners because if the owner defaults on the loan, it is much harder for the bank to take over and manage the property than with other commercial properties. There are also many environmental risks and bad connotations that come hand in hand with the oil business, which makes it much harder for banks to evaluate a loan and to provide bad credit service station loans. The underwriting necessary to finance a service station is very complex and usually deters banks from participating.

Reasons For Bad Credit Service Station Loans

Borrowing money is necessary to maintain a gas station, which may lead to a bad credit due to their relatively high debt to revenue ratio. And as outlined above, there is virtually no way to get a loan from a traditional bank for a service station even with a good credit score. But bad credit service station loans are still possible through Small Business Funding. They connect small businesses like yours with alternative lenders that have underwriting skills for funding businesses when big banks can’t. They view overall business performance, cash flows, and seasonality rather than a FICO score. These days, most people suffer from bad credit scores, especially if they are working hard to run a small business. But through Small Business Funding, it is still possible to get bad credit service station loans.

To apply for bad credit service station loans click here or call direct to 1-800-742-2995