Line of Credit for Plumbing Companies

By Matthew Elling
Co-Founder and Consultant at Line of Credit Depot
Updated on February 10, 2021
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Are you looking to expand your electrician business? There are many options available for financing your electrician business, whether you want to expand or keep up with business as usual.

The best electrician line of credit can help your business grow and cover operating expenses, repairs, and other costs that you may not have the capital for. Let's look at some reasons why you might need capital that is dynamic and affordable.

Expansive expansion of your Electric business

Do you have an interest in purchasing another gas station? Maybe a competitor gas station is closing down or the owner is retiring and wants to sell. No matter how you want to grow your business, financing can help you achieve your goals.

Complete Renovations

Are you looking to improve your mechanic's bay or fueling station? Perhaps you are interested in adding a commercial building to your property. There are many funding options available for renovating an existing gas station.

Add Equipment

Are you putting off updating your equipment? It is crucial to keep your equipment in compliance with environmental regulations. Do not let your equipment get old. Equipment financing is an option if your storage tanks and fuel pumps are in need of repair.

Pay Bills

Consider working capital financing if you are experiencing a slow season or need cash to get you through it. This funding type can be used to cover the following expenses:

  • Bulk fuel
  • Payroll
  • Utilities
  • Rent
  • Insurance
  • Maintenance

Where to Find Gas Station Loans

Banks and non-bank lenders can provide gas station loans. However, conventional banks may not be able to finance gas stations. This is a common misconception. This is due to environmental issues associated with filling stations and the inability to accurately track cash flow due the business' high cash-transaction nature. You might find it easier to get financing from an alternative lender.

You can use a gas station calculator to estimate your monthly payments once you have found a commercial gasoline station loan that you are interested in. An online loan repayment calculator allows you to enter your loan amount, expected interest rate, and loan term. This tool allows you to compare lenders terms and determine how much a gas station loan is possible.

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Best Financing and Loan Options for Gas Stations

There are many types of commercial gas station loans available. Take a look at the top funding options and decide which one is right for you.

Term loans

A term loan is a good option if you are looking for a loan to finance your gas station. After you are approved for a term loan you will receive a lump sum. There are many options for business term loans. They can be short-term or long-term and often there is no limit on how much you can use. A short term loan is one that can be paid back in a year. There are loans with longer repayment terms, such as 1-5 years.

Rates for gas station financing will vary depending on many factors, including the length of your business, your annual revenue and your credit rating. Longer term loans tend to have lower rates than shorter term loans.

Business Lines of Credit

Revolving business credit lines can give your business the ability to access funds whenever you need them. They also allow you to replenish your credit line as you pay down your debt. A cash advance is possible without paying a fee.

You pay interest only for the amount that you borrow. You don't need to provide collateral in order to get financing for business credit lines. This could lead to higher interest rates and smaller credit lines, but it is possible.

SBA Loans

You're in luck if you are looking for an SBA loan to finance your gas station. There are many funding options available through the Small Business Administration (SBA). An SBA-insured loan might be an option if you have been turned down for financing for gas stations by a traditional bank. What is the reason?

Lenders can be assured a portion of every loan by the SBA through partnerships with lenders. This reduces the risk for lenders if a borrower defaults. SBA loans have a maximum maturity of 10 years for equipment, working capital and 25 for real estate.

SBA 7(a).

The SBA 7(a) is a loan program that can be used to purchase a gas station. Borrowers may be approved for loans of up to $5,000,000 and the funds can be used to support:

  • Buy or expand a business
  • Construct a commercial building
  • Purchase equipment
  • Get working capital
  • Remodel a leased property

The maximum gas station variable loan rates that you will see with the 7 (a) range from a rate base plus 2.25% up to a rate base plus 4.75% depending on the amount of the loan and the repayment term. The Prime Rate was at 4.75% as of October 2019.

SBA Express

An SBA Express loan may be the best option if your funding needs are not exceeding $350,000 and you require quick access to financing. Although interest rates may be higher than others, you can get a response from your lender in 3 days and funding in 30. The repayment terms can be either five or ten years. The maximum interest rates on SBA Express loans are Prime plus 4.5% to Prime Plus 6.5% depending on the amount of your business loan for the gas station.

SBA 504/CDC

SBA 504 loans can be arranged in conjunction with certified development corporations (CDCs). It works like this: The borrower will offer a minimum 10% down payment. The lender can finance up to 50% of the project and the CDC up to 40% (which are insured by the SBA up to their maximum limits). The loan amounts can be unlimited. You can repay the loan in either 10 or 20 years. The time it takes to get funding is between 60 and 180 days. You can't use funds to fund working capital. However, you can purchase, renovate, or build facilities, and refinance certain loans.

  • Independent Gas Stations in America
  • A December 2018 survey conducted by the National Association of Convenience Stores, (NACS) found that 62% of U.S. gasoline stations with convenience stores are independent businesses. Fuel industry owners often need cash to expand their businesses or make it through difficult times.

Lenders for Gas Station Equipment

Equipment financing is a way to get funding to purchase or lease new equipment. Equipment financing products is secured by the equipment that you are purchasing. This type of financing is less risky than an unsecured loan.

Rates vary depending on many factors such as the lender, equipment type, age, and financing product. You might however find rates at gas stations for equipment loans that range from 8% to over 20%.

Equipment financing is available to purchase the following items for your filling station

  • Pumps for gas stations
  • Underground tanks
  • Point-of-sale systems
  • Washing machines for cars
  • Gas station signage

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