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6 Best Sources of Business Loan for Gas Station in 2023

A gas station loan serves to help willing entrepreneurs purchase a new gas station, service station, or convenience store; expand an existing one, or grow the number of gas stations they own.

Aside from that, it can also ensure that you can adequately cater to the everyday expenses that come with running a gas station. Note that owing to the cash-only basis of many gas station customers, it can be quite daunting to obtain a loan or find a lender because of the lack of proof of income.

A gas station loan refers to the financing or debt that gas station owners can leverage to buy a new gas station or grow an existing business.

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Also note that the exact type of financing you prefer to work with will depend on your goals, business history, business credit, and a vast array of other factors. Although it can prove to be quite challenging to find gas station loans, it’s not impossible. Below are the best sources of business loans for gas stations.

Best Sources of Business Loans for Gas Station

  1. Bank Loans

This sort of loan is a viable option when it comes to financing a gas business; however, note that this will depend on your qualifications and the property type. Commercial loans and small business loans can be utilized for a wide array of reasons, from buying a gas station to paying for the operational expenses that come with operating the business.

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The sort of bank loan you are eligible for will vary and will most often depend on your business credit score as well as how good your financials are, coupled with the loan terms and repayment terms.

Steps to Apply
  • Put together a detailed business plan
  • Explain how you intend to invest the funds
  • Note the amount of money you require
  • Know your credit score
  • Sanitize your credit report
  • Evaluate all your lending options
  • Ensure to maintain proper financial records
  1. Commercial Real Estate Loans

For entrepreneurs who have intentions to purchase an existing gas station property or develop a new one, a commercial property loan could prove to be the ideal choice. Note that you can also leverage a real estate loan to refinance and get cash out of your existing property. Howbeit, note that you will most definitely have to produce a down payment with this option, as well.

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While it will most definitely vary, most often the requirements will have to do with your business’s finances, your personal finances, and the property’s characteristics.

Steps to Apply

Most often, banks and lenders will mandate that you provide the following:

  • Business tax returns
  • Your books, records, and financial reports
  • Last three months or more of bank statements
  • Details regarding collateral
  • A third-party appraisal of the property
  • Business plan
  1. Small Business Administration Loans

SBA loans are known to be much more flexible than other financing, even though they tend to come with stricter qualifications.

Have it in mind that you can utilize these particular loans to increase short- and long-term working capital, refinance business debt, or buy equipment. Nevertheless, it is recommended you consider your other funding options before you seek out this type of loan.

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Note that requirements will differ and will most often depend on the lender and the individual loan program. However, you’ll have to meet certain necessary criteria from the U.S. Small Business Administration — such as being part of a qualified industry — and have good credit and strong financials to become eligible for these small-business loans.

Steps to Apply
  • Check that you are eligible for an SBA loan
  • Select your SBA loan program
  • Locate the right SBA lender
  • Compile the information and documentation required to apply
  • Complete your application
  • Close your loan and receive funds
  1. USDA Business and Industry Loan Guarantees

Keep in mind that the U.S. Department of Agriculture boasts of a rural development program for entrepreneurs who are looking to start or effectively operate a rural business, such as a gas station.

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Also, note that the USDA Business and Industry (B&I) loans can also be accessed by gas station owners who are looking to manage a business that’s situated in a location with fewer than 50,000 residents. This loan tends to necessitate collateral, most often your gas station.

  • Must Be a U.S. Citizen or Permanent Resident
  • Must Be Located in a “Rural Area”
  • Strong Credit Score
  • Strong Business Revenue
  • Collateral
  • Personal Guarantee
Steps to Apply

To get this loan, you will first have to reach out to your state’s USDA office and speak to their business division staff. Once your project meets the requirements of any of their programs, the agency will meet with you and the lender to help cement a preliminary decision on project qualification.

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As long as they offer preliminary approval, you’ll be tasked with sending in a complete application. Depending on the details you inculcate, the agency will offer a conditional commitment to guarantee your loan within 30 to 60 days.

  1. Business Line of Credit

For gas station businesses that require financing to cover equipment, inventory purchases, or day-to-day expenses, a business line of credit is a valid option to take into account. Keep in mind that you can utilize any amount of the money in your line of credit up to your limit, and you are only required to pay interest on the amount you borrow.

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Without a doubt, it can be less stressful to be eligible for a line of credit especially when compared to a traditional commercial loan, and this can be very helpful for a gas station owner.


Although this will vary depending on your lender; howbeit, you will need to be at least a year in business, have a 600+ FICO score, and have a minimum of $120,000 in annual revenue. You might as well be required to provide collateral.

Steps to Apply
  • Decide How Much Funding You Need
  • Check Your Eligibility
  • Research and Compare Lenders
  • Gather Required Documentation
  • Submit Your Application
  1. Equipment Financing Options

If you require funding to obtain new equipment, like gas pumps for your service station, equipment loans should be your go-to option. This form of financing is ideal especially since it can be utilized to purchase service station equipment.

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Aside from that, this type of financing is secured by the equipment you’re purchasing. It simply entails that equipment will more or less act as collateral for the loan.


Lenders will vary in their requirements to obtain an equipment loan; however, the amount you’re capable of getting, along with your interest rate will depend on the price of the equipment, your personal and business credit score, in addition to the financial health of your business.

Steps to Apply

Obtaining this sort of loan is very much the same as obtaining other types of loans. Your banking institution will have to take into consideration your credit history and the length of time your business has been operating. Aside from that, the lender might very well request a business plan that integrates the intended equipment and its impact on productivity and revenue.