There is also a perceived environment risk attached to the business of petroleum. Moreover, in cases of foreclosure the banks unlike the real estate property do not step into running the business till a buyer is found. Adding to your misfortune, the margin on fuel has hit an all-time low and these financial institutions don't see much profitability in this business.
Are SBA loans doing enough?
You might boast of a friend having been financed by Small Business Administration (SBA) programs in the past. But my friend, the days are not the same. Things have drastically changed over the years. Banks would have loved to extend loans guaranteed by the SBA, but the numbers of such business loan guarantees have declined gradually over the years. The third party financial institutions backed earlier by the SBA have either removed the portfolio or shutdown their businesses.
What about conventional financing?
Getting into conventional financing is a good option but will the bank offering a low interest and long repayment option sanction your loan? Considering, the lacklustre profitability in petroleum, Not, in most the cases. So does that leave you asking, should I venture into a gas station?
SBA in 2009 had brought some relief by providing a stimulus package that did not require indemnification contracts other than the transactions with perceived environmental risks. But this was not enough. Lending institutions still feared investment into gas stations. The lack of understanding of the fuel portfolio has led to creating low investor confidence.
The way out
Merchant Cash advances have recently come up to be a much preferred option for the gas station owners. Though not as good as the small business loans, they are certainly an alternative to meet your much felt financial needs in time. All you need to do is file a short application online and the money becomes available in 72 hours. This is indeed a life saviour for your urgent financial requirements, when you have been turned down by all.
The solution lies in presenting the business plan in an attractive, profitable and realistic way. You could offer a mix of gas station with a convenience store or value added services to attract customers. Banks need to be assured of their returns in time. Once convinced you are certain to get the financial assistance that you seek.
Along with the exact purpose of the small business loan, presenting a detailed account of how the fund will be utilised with the future revenue projections, is advisable. Keep all the financial records and documents in place and apply for the loan.
Keep in mind that the people you are dealing with are highly specialized people and have thorough knowledge of the petroleum portfolio. So, you cannot fool them. Be honest, realistic and bring out the entrepreneurial innovation in you.
Are SBA loans doing enough?
You might boast of a friend having been financed by Small Business Administration (SBA) programs in the past. But my friend, the days are not the same. Things have drastically changed over the years. Banks would have loved to extend loans guaranteed by the SBA, but the numbers of such business loan guarantees have declined gradually over the years. The third party financial institutions backed earlier by the SBA have either removed the portfolio or shutdown their businesses.
What about conventional financing?
Getting into conventional financing is a good option but will the bank offering a low interest and long repayment option sanction your loan? Considering, the lacklustre profitability in petroleum, Not, in most the cases. So does that leave you asking, should I venture into a gas station?
SBA in 2009 had brought some relief by providing a stimulus package that did not require indemnification contracts other than the transactions with perceived environmental risks. But this was not enough. Lending institutions still feared investment into gas stations. The lack of understanding of the fuel portfolio has led to creating low investor confidence.
The way out
Merchant Cash advances have recently come up to be a much preferred option for the gas station owners. Though not as good as the small business loans, they are certainly an alternative to meet your much felt financial needs in time. All you need to do is file a short application online and the money becomes available in 72 hours. This is indeed a life saviour for your urgent financial requirements, when you have been turned down by all.
The solution lies in presenting the business plan in an attractive, profitable and realistic way. You could offer a mix of gas station with a convenience store or value added services to attract customers. Banks need to be assured of their returns in time. Once convinced you are certain to get the financial assistance that you seek.
Along with the exact purpose of the small business loan, presenting a detailed account of how the fund will be utilised with the future revenue projections, is advisable. Keep all the financial records and documents in place and apply for the loan.
Keep in mind that the people you are dealing with are highly specialized people and have thorough knowledge of the petroleum portfolio. So, you cannot fool them. Be honest, realistic and bring out the entrepreneurial innovation in you.