Tag Archives: c-store

Florida Gas Station Loan Closes

Senior Associate Ryan Dumas is pleased to announce the closing of a loan for a gas station in central Florida. The loan funded at 86% LTV (loan to value), including inventory costs. These were very favorable terms, and we are proud of this high leverage loan. In addition, the interest rates were extremely competitive.

This loan closed, despite two hurricanes coming through the area. Fortunately, neither one materially affected the gas station.

Ryan had this to say about the deal, “We had a great team collaborating on this deal. My client was working with an experienced gas station broker and also a very responsive attorney. We were able to quickly get the documents needed from the sellers and the buyer. Therefore, our lender was motivated, too. As a result, the lender quickly approved and scheduled the closing. I hope we can work with lots of these guys again, as they are bright, experienced business people.”

How to Set Yourself Up for a Quick Closing

• Organized Documents: Sellers and buyers need to have their vital documents in tip-top shape. If you think a business loan is coming down the pike, gather your materials. Create your own personal financial statement. Organize documents about businesses you own, like tax returns and financials. Contact your accountant and get up-to-date financials on all your businesses, even if it is not your practice to receive monthly financials.

•Engage Professionals: Consult with an attorney and your accountant before making business decisions. Call our GRP Capital Team before you even sign a PSA. Ask your advisers, “Can I afford this? What is a reasonable price? Do you think the timing is good now?”

• Get insurance in place now: The commercial property insurance marketplace is very volatile right now. Start the process of finding insurance immediately and figure out if you can afford the costs. As soon as you can, obtain insurance certificates. Insurance issues are one of the prime reasons for delayed closing. Waiting to purchase insurance until the last minute usually backfires.

•Be Flexible: If a quick closing is a priority, be ready to pivot. If an appraisal comes in short, buyers and sellers may have to renegotiate. Sometimes we have to tweak the structure of the loan, especially for SBA approval.

Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. Whether you are looking to refinance, purchase or engage in construction, we would love to discuss your business plans with you. If you are considering becoming a first-time (or second or third time!) buyer, we can assist you.

High Season for Gas Stations: Are you ready?

Summer is around the corner and with it the high season for gas stations.

Some statistics that you should know:

  • The U.S. Travel Foundation is still predicting high travel for 2023, despite inflation.
  • Domestic travel in the U.S. remains the most popular option.
  • 37 million Americans are planning to travel just during Memorial Day weekend. 

Is your gas station ready for the Summer of the Car?

Our network of lenders is still keen to make financing available for gas stations and convenience stores. Perhaps you are interested in purchasing or construction of a gas station. Or maybe you already own a gas station and are ready to renovate. Now is the time to capitalize on this sweet spot in financing. Here are some ideas to consider for future renovations and current operations:

Revenue Enhancements for Gas Stations

• Are you fully staffed? Gas stations and convenience stores naturally compete with their nearest neighbors. Does your store have a reputation for efficiency? Indeed, the only way to be efficient is to have sufficient staffing. In essence, when you are you fully staffed, you can sell more types of products. These can  include drink stations, complicated coffee stations and self-serve snacking. 

• Car Wash Capacity: Increased driving means increased dirty cars! What’s more, those car washes quickly pay for themselves, especially when customers see no waiting for a wash. It’s no surprise that lenders are quite willing to fund renovations that include increasing car wash capacity. 

• Charging Stations: Electric and hybrid cars are increasing throughout urban and suburban areas. First thing to remember, charging takes a few minutes. As a result, these customers will absolutely use this down time to come inside and make some purchases. Therefore, adding charging stations is a great investment, one that is viewed favorably by lenders. Finally, installing a charging station may also have a tax incentive. 

• Fuel Supply Agreements: Are you satisfied with your fuel supply agreement or are you ready to renegotiate? GRP Capital can help you in this process, one which directly affects your bottom line. 

If you are interested in any form of gas station loans, now is the time to act. Contact our team or email us at fuelup@grpcapital.com to access our gas station specialists.