Gas Station Financing Become Competitive & Hard To Procure

Gas stations are considered to be profitable ventures but the truth is far from that and the fact that major gas companies are working at a margin as low as 5 to 7 percent per gallon, it becomes hard to see the profit. This is why gas station financing has become not only competitive but also hard to procure as well. So even if you are bent on getting a loan for your gas station cum convenience store, then you will have to make an earnest effort as the options are not as many as you would like. However, it is not that it is impossible to get gas station financing only if one proceeds methodically.

 

 

Firstly, the reason why financers would wish to stay clear of gas station financing is that the margins are getting lower every day but that is not the only reason. The fact is that gas stations are associated with much environmental risk and the tough environmental laws make it very difficult to convince the environmental agencies about the cleanliness of a site. This has led to very elaborate environmental monitoring requirements of the site in question which is expensive and time consuming and hampers the process. Moreover, it is difficult to demonstrate the profitability of a gas station as it is a cash business. However, one must always show that you intend to operate a convenience store as well because it can help in demonstrating the profitability also. Moreover, get all proper environmental documentation before applying for gas station financing.

 

Motel Loans

 

Motel loans are also in the category of gas stations when it comes to getting finances.Motel finance is becoming difficult because of the nature of the motel industry itself. Primarily, motels are establishments which are far away from cities and other mainstream areas and are generally situated in towns and villages. This makes them not so profitable in the books of the financers. Motel loans are usually given for those motels which are part of a national chain of motels or franchisees. Since not all motels are under a national franchisee, so it becomes difficult to get motel loans, especially from major organizations like banks. However, if you are still intent on getting motel finance for your venture, you can approach niche lenders and SBA loans. But you have to demonstrate the fact that you have a previous experience in the motel or hospitality industry, any partnership agreements, and that you have an able management plan for the business in question. Consult a motel financing expert to oversee all formalities and complete all formalities in a proper manner so that you are successful with your application.

Gas Station Financing

Financing means, to get financial or monetary system for starting a business or expanding a business. Money factor is always included in the every business or every system in the world. Without money one cannot even think to take a start in the business of either kind. Besides this money is one of the five factors or five “M’s” of the management. Finances are the very important factors of a business. The more finances a business has, its infrastructure is as big. Gas Stations are increasing day by day all over the world. The importance of these Gas stations is very much in the lives of people. These types of stations not only provide gas for the home use or for hotel uses; rather they provide gas for the cars and the other vehicles which are running on the roads of the United States. Besides this they provide gas as a fuel for the cooking as well as to produce other materials in the factories or and fuel for the small scale industries. Banks of The United States of America is offering the Commercial Loans for gas stations under their section of Gas Station Financing. The bank does not provides loans only for these kind of business as the management of the bank have decided to offer loans for service station and c-store and for so many similar kind of businesses. These kind of financing are available for the acquisition or refinancing of the properties. In the yester years Gas Station Financings have become more difficult due to the dynamic conditions of the industry which are changing time to time or in the frequent times. These dynamic conditions included the strict agreement of the suppliers, and the so many other external factors which are affecting the respective industry. For a person or for a firm, there are so many requirement conditions which are required to be fulfilled by them before applying for a loan such as 3 year business and the individual tax returns, bank statement of the personal bank account of the applicant, financial statements of the business for the recent times, the agreement of a franchise if it is applicable on the applicant’s business status and AR/AP schedules and so on. If these requirements are fulfilled only then a businessman or a firm is able to get approval for loan from the bank. The criterion is not very much hard but this documentation takes time for both the parties. Banks are only looking for a genuine businessman or a business to offer the loan and besides this the management of the bank is also checking whether the return of the loan is possible from an applicant or not. Moreover the banks do not approved the applications of a black listed business and the individuals. Here black listed persons or the businesses means those who previously took loan from the bank and do not return it to the bank and due to them the bank has the suffer for other proceedings against those black listed such as police complaint and other court convictions.

Motel Financing

Motel means, a hotel on the motorway. The business of motel is increasing very swiftly in the yester years. Motel finance and Motel financing are the synonym for each other. Banks and the other conventional lending sources such as financers all over the country are often turning down small amount loan money requests for the Motel Financing. Most of the time the credit of borrower is very good and the property is sounding very good and very well occupied. These kinds of sources do not want to handle small loan money. There are so many reasons for this as many deserving business people do not get the necessary loans to fulfill their purposes. Commercial Banks associate with the clients that small motel financial will not handle.

The stated income Motel Loans are available all the time for the most commercial real estate property types which are located in medium and the giant market sectors across the United States of America. Commercial Banks stated the income commercial loans that do not require the income documentation and they generally require the some documents than the traditional loan services and the traditional lending services. The most of the commercial banks offer the motel commercial loan as a part of their Comm-Series or Commercial Loan Program. For a firm or to individual to qualify for a Motel Loan , the current business must have to support minimum of 1.25 DSC and it has to be in the operation for at-least two years. 85% of the commercial financing is available for the MFP (Motel Financing Program) with the backing of SBA. It is stated that income motel commercial property loans are available with a maximum LTV 0f 75%.

The large balance Motel Commercial real estate loan program is designed for average and the condition which is above average condition property types which are located in the infant to giant market sectors. There are so many conditions attached with this such as they are not charging any upfront fees. The approval process is not very much lengthy. This means from the date of applying for a loan, if a person or a firm is fulfilling all the basic requirements then they are able to get fast approval on their desired loan and they are in the condition to fulfill their purposes with that amount of loan. Besides this the banks do not require periodic financial reporting from the customers or the loan applicants. Moreover the bank management offers 30 years terms with low and fixed rates of interest to the customers who are going to apply for the loan or they have applied for the loan previously.

Banks and the traditional sources of lending money have approved the loan against some property either of commercial type or of domestic type. Besides this if a person or a firm is having a big fixed deposit amount then he is also able to get loan against that fixed deposit. The banks and the other sources required these kinds of property before applying for a loan as they need it as a security as if a person or a firm is unable to return the loan amount then the money will be recovered by selling that property in the auction.