Gas Station Commercial Property Loans and Financing

Gas Station Loans: For many small business entrepreneurs, opening a gas or service station is the most common and popular choice. Many gas station owners generate additional revenue from convenience store products, small auto repairs and car maintenance services. Automotive fuel and service technicians will be in demand forever. Personal transportation will never go away and the need to maintain and service these vehicles will never go away either. We all need a capable and trustworthy automotive technician to help us keep our cars well maintained at a fair price and to advise us when our vehicles need attention.

As with most all commercial loan lending, acquiring a loan for a gas service station can be challenging. The very important factors such as environmental insurance and local regulations can become a boundary for getting the business planned and started. Many lenders tend to reject gas station loan applications for those very reasons. Leasing agreements and predicted revenue can also be a burden.

Gas stations, auto repair service and body shop loans for financing acquisition or refinances are easy with Dirk Welsh Financial Services. You have the ability to select from a variety of rates and terms for your businesses financial debt structure. We can arrange lenders for up to 90% CLTV of the purchase price or 70% to 80% of real estate value for refinancing.

Gas station commercial loans are designed for gas stations, service stations, gas, c-store and other coincidental property types located in all states. Gas station commercial property loans are available for the acquisition or refinancing of above average condition properties.

In recent years, gas station financing has became more and more difficult due to a dynamic and ever changing industry, environmental concerns, strict supplier agreements and other external factors negatively impacting the industry.

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Gas Station Financing – Eligible Property Types:

Properties eligible for gas station commercial real estate loan program should be of above average condition, environmentally compliant and located in medium and above market sectors.

• Loans must be secured by Real Estate.
• Brand or Non-Branded is acceptable.
• Owner Operated or Investor
• Gas with C-Store is acceptable.
• Programs Available for Full-Service Stations
• SBA and Non-SBA Programs
• Established Businesses Only (No Start Ups)

Gas Station Commercial Loans – Program Highlights:
1. Minimum Gas Station Commercial Loan Size $250,000
2. 15, 20, 25, & 30 Year Amortizations
3. Fixed and Variable Rate Options
4. LTVs Range Between 55% – 80%
5. Flexible Prepay Options
6. Full Document Only
7. Minimum 620 Credit Score
8. 2 Year Seasoning for Refinances
9. Full Recourse Guarantee Required

Initial Gas Station Loan Documentation Check List:
• 3 Years Business and Personal Tax Returns
• Personal Financial Statement Dated Within the Past 60 Days
• Business Interim Financial Statements
• Supplier Agreement
• Franchise Agreement if Applicable
• Phase 1/Phase 2 Report
• AR/AP Schedules
• Purchase Agreement if Applicable
• Borrower’s Credit Report – Borrowers may pull their own credit report and submit with loan application package. Report must show all three bureau scores.
• Statement Addressing Negative Items on Credit Report if Applicable

Commercial gas station and auto body repair shop mortgages highlights:
• Loan-to-Value ratio (LTV): Gas stations auto body and repair shop loans for financing 70% LTV and higher.
• Purpose: Loans for purchase, refinancing and cash outs.
• Geographic Region: National
• Rates and Terms: Very competitive
• Program types: Fixed and adjustable types available.
• Amortization period: Up to 20+ years
• Secondary liens: Seller carry back allowed up to 90% (CLTV).
• Down payment: As little as 10% with seller carry back.
• Collateral: First position lien only on subject property.
• Appraisal: Appraisal required.
• FICO score: Require a 575 minimum FICO score.
• Environmental due diligence: Required on all properties.
• Recourse: Full recourse to the borrower. Non-recourse under certain circumstances.
• Fast Commitment and Closing – LOI issued within 2 days of application and firm commitment is issued within 4 days after receipt of all required documentation from borrower.