Gas Station Financing - What You Need To Know Before You Buy

Do you want to own a gas station? Gas stations can be very profitable businesses to own (if you don't believe me, just take a look at the current gas prices!), especially if they are branded. But what most potential owners don't realize is that financing for these types of properties can be very difficult. Before you consider buying a gas station, you should have a good understanding of what it will take to get it financed, unless of course you have lots of money and you can pay cash for it!

So what are the 4 top reasons why financing for gas stations will fall through?

#1 Environmental concerns

Rightfully so, most lenders don't want the liability issues that can arise from current or previous owners. Often times, the costs to clean up a site can be more than what the property is worth. Make sure you perform due diligence and ensure that the property you are considering doesn't have any contamination issues or improper underground storage issues. This due diligence will include a Phase I and Phase II Site Assessments by a reputable environmental company. Lenders will only consider these reports if they are recent, so they are only valid for about six months.

#2 The Borrower Is Inexperienced

Because the default rate can be so high in this industry, most lenders want their borrower's to have some experience in this industry. Experience can be in the form of managing gas station or convenience stores. Also, most gas companies offer some sort of training for their franchisees, for most lenders this will count towards experience. What if you don't have any of those? You then might have to take on a partner that does have the experience, so that you can get financing.

Presenting Business Plans - Why People Feel Nervous and What You Can Do About It

If you are looking for finance to either start up a business or expand your existing one you have to accept that if you want the Bank to say yes to your superb business idea, you are going to have to spend time preparing for the interview.

The chat with the Manager is your only chance to really sell yourself and your idea. It's rare that you'll get a second chance with the same Manager or Bank. So don't deny yourself the opportunity.

But many people have a problem in presenting themselves in front of strangers!

So let's consider why people find the idea of selling themselves and their business a daunting task.

Lack of Confidence

Some people just don't feel confident when talking in a public situation. You may not consider communicating on a one-to-one basis as talking in public, but it is. Outside of your own "self-talk" (conversations you have in your mind with yourself) and within your own home, all conversations are essentially public speeches.

Lack of Preparation

If you haven't prepared properly then this will show through in any stressful situation. Lack of preparation includes not knowing the ins-and-outs of your business idea or Business Plan and not anticipating the type of questions you'll be asked during the interview. It's comparable to going into an examination and knowing deep down that you haven't put the effort in - do you remember that feeling?

Poor Communication Skills

Some people feel that they can never communicate their ideas in a clear and coherent manner; their thoughts are jumbled up and are not in any order; words and explanation of concepts come out in a muddle. As a result, their body language and voice begins to reflect the uneasiness, which leads to even more mental anguish. And so the cycle continues ever downward!

Poor Self Image

Some business people don't see the interview as a meeting of equals in which both parties want a successful outcome. They see the Manager as some kind of ogre, someone, who given half the chance, will devour them up and cast them aside, just for his own evil pleasure! This enduring image stays with them right up to the start of the interview, dominating their thoughts and making the whole process a complete disaster!

Lack of Focus and Planning

On the day of the interview, some try to do a thousand-and-one other things before going along to the Bank. What happens? They get stressed out because something has not gone to plan - the man who was to come to repair the washing machine didn't turn up until an hour after the agreed time; they forgot that the car would need fuel on the way in and so this has added 10 minutes to the journey time; a friend turns up at the house and they don't have the courage to tell her to go, so an hour later she's still there!

By the time they get to the Bank, their heart is beating faster than that of a marathon runner and their mind is a complete blank! They don't see the day as having one job, that of seeing the Bank Manager, and so the day isn't properly planned.

All these unplanned diversions and delusions can take your mind off mentally preparing for the important task ahead.

Do any of these situations sound familiar? What can you do to put yourself in a better frame of mind?

Here are 3 suggestions out of my 9-step Interview Preparation Plan

Have Belief in Your Future Success

Before someone else can believe in you, you have to believe in yourself. You must absolutely have no doubt in your own mind that you will succeed in setting up your business or moving your current business forward. It's not about what you believe you are now but what you believe you can be in the future. You may have little in the way of money or assets now but you have to believe that in the future you will have all these things (if this is how you define your idea of success).

You have to be 100% sure that you are going to be one of the few people who will make a success of their life. You have to demonstrate an "I-will-get-to-the-top" attitude. If you don't believe you can climb to the top of the mountain then it's certain you won't! People, and this will include your Bank Manager, follow the person who believes what he is saying.

Obtaining a Business Loan When Your Credit Rating is Poor

Poor credit, unfortunately, is a common problem for many women. Poor credit can happen for a variety of reasons. It can be due to a divorce, when bills weren't paid on time or at all. It can be due to a medical disaster, where bills have piled up so high that paying them has become impossible, and credit scores have dropped accordingly. It can be due to a job loss or lack of income and the inability to pay bills. Whatever the reason, it may also mean that you'll have difficulty obtaining a business loan. However, it doesn't mean that obtaining a loan for your business is impossible or completely out of reach. A bad credit loan may be the key to pulling yourself out of financial problems and getting back on track in order to focus on your business needs.

There are many programs and lenders that specialize in bad credit loans. Because someone with poor credit is viewed as a high risk to lenders, business loans for these individuals are virtually impossible to obtain. However, by becoming creative and resourceful, obtaining a bad credit loan for business purposes is definitely possible.

- Refinance your home for cash out, or consider a home equity loan.
Most commonly, and probably most easily obtained, a bad credit loan for business purposes can be approved for someone with credit that's not ideal if they are property owners. According to Targetwoman.com, approximately 20 percent of all adults are not able to get a conventional mortgage due to their poor credit rating. If you're one of these individuals, you're not alone. Don't feel completely embarrassed about it, but rather, be aware of it, and search for loan sources that specialize in bad credit loans. Use your home ownership status to your advantage. You'll pay a higher interest rate, but by refinancing your home and getting back on track, you'll have the opportunity to repair your credit by making your payments on time, thus rebuilding your credit and allowing yourself the opportunity to refinance again down the road at a lower interest rate.