Article Summary:

• Gas station financing in Florida can be difficult to get but there are options.
• Figuring out how to buy a gas station in Florida with no money down requires excellent credit and meeting certain requirements.
• Review potential interest rates, terms, fees, and monthly payments before taking out a business loan.

How to Buy a Gas Station in Florida with No Money Down

You might consider buying a gas station if you want to try a new business venture. Buying gas is a need for many people, so owning a gas station could offer some reliable revenue. It could be a good investment in a large state like Florida, which has many gas stations.

However, securing gas station financing is already tough. If you have no money down, it becomes even tougher. In this guide, learn about the gas station business and how to buy a gas station in Florida with no money down.

What to Know About the Gas Stations Business

Gas stations don’t usually earn all that much at the pump. In fact, the National Association of Convenience Stores (NACS) states that the average fuel retailer makes only about 10 to 15 cents per gallon. In most cases, gas station owners make their bread and butter by selling other items at an attached convenience store.

Recently, NACS reported that 120,061 convenience stores sell fuel in the U.S. These convenience stores, sometimes called C-stores, sell 80% of motor fuel across the U.S.

You might think big names like Chevron, Mobil, and Shell own gas stations, But NACS says that out of the 120,061 convenience stores that sell fuel, 54% of them are single-store operators.

So, entrepreneurs looking to buy an existing gas station can make it work but need to be smart about profit margins. Your big money makers will likely be the extra stuff people get while at the pump, like getting a car wash or snacks for the road. It’s possible to build a gas station from scratch, though that will be more cost-intensive and require a lot more work.

Location Matters

Like with any business, location matters. The same goes for Florida gas stations. You can look into major cities in Florida like:

• Boca Raton
• Daytona Beach
• Fort Lauderdale
• Jacksonville
• Miami
• Orlando
• St. Petersburg
• Tallahassee
• Tampa
• West Palm Beach

While focusing on a hub can put you in a better position, you still need a prime location. Do your market research and look at places near highways, rest stops, and major attractions. Before you pin down how to buy a gas station in Florida, focus on where to buy a gas station in Florida.

How to Buy a Gas Station in Florida with No Money Down

Figuring out how to buy a gas station in Florida with no money down can be challenging. Many lenders do require some sort of collateral or require a down payment.

Some options for 100% financing exist, but you’ll need to put yourself in the best position possible beforehand. Here’s how you may be able to get gas station financing in Florida with little to no money down.

Have a Business Plan

If you want your new business venture to succeed, you need a business plan. This is true even if you’re buying an existing gas station business. New ownership means a new business plan.

Your business plan should include a company description with the basics about your products, locations, and customer base. Additionally, it provides financial projections and market analysis. The Small Business Administration (SBA) outlines the key components to cover in your business plan.

Build Personal and Business Credit

If you want to learn how to buy a gas station in Florida, it’s crucial to understand what lenders look for when providing small business loans or financing. Credit is one of the top factors lenders look at when determining whether you qualify for a loan.

You generally need excellent credit to qualify with no money down. Even then, there’s no guarantee that you’ll get approved for a loan, let alone with no money down, but to improve your chances, build up your personal and business credit.

Your personal credit will take center stage for new businesses with little credit history. So, if you have average or poor credit, you may need to boost your credit score first. Paying off your credit card balances in full and making all monthly loan payments on time may help.

Building business credit can be a process and takes time. One of the simplest ways to get started is through a business credit card. The key step is to ensure that payments get reported to the major business credit agencies which are:

• Experian
• Equifax
• Dun & Bradstreet

Having solid personal and business credit can show lenders that you’re creditworthy and responsible with the loans and credit you have.

Gas Station Financing in Florida

If you’re struggling with how to buy a gas station in Florida and not sure where to start, you have a number of options to look into.

SBA Loans

Business owners can get funding support from the Small Business Administration. The SBA has different loan options that may help you buy a gas station in Florida. One thing to note though is that you can typically only get up to $50,000 with no collateral.

The top option to buy a gas station in Florida is the SBA 7(a) loan program. Through a 7(a) loan, you can use the funds for real estate, working capital, equipment, changes of ownership, and more. What’s appealing about the SBA 7(a) loan is that the maximum loan amount is $5 million.

Many 7(a) SBA loans require 10% down, but depending on the circumstances you may qualify for 0% down and 100% financing.

But if you’re buying an existing Florida business, you typically need to put a down payment.

Online or Alternative Lenders

SBA loans tend to have some hoops to jump through and may be tough to get a loan with no money down. Another option that you may have better luck with is through online or alternative lenders. Some allow you to get prequalified ahead of time and can provide fast business funding.

Through these types of loans, you generally get a lump sum and repay it over a fixed schedule. Whether or not the lender allows for no money down depends on the specific eligibility requirements and loan. The interest rates and terms depend on the applicant and can vary from business to business.

Business Line of Credit

If you want to know how to buy a gas station in Florida with no or low money down and already have some assets available, a business line of credit may help fill the gaps. This isn’t a traditional loan where you’ll get funds upfront. Instead, it’s more like a credit card where the credit available to you is revolving.

The lender approves you for a specific amount you can draw upon as needed. Like a credit card, as you repay it, you can access the rest of the available credit. An unsecured business line of credit allows you to access funds without collateral and doesn’t require a down payment.

Equipment Financing

If you’re brainstorming ideas on how to buy a gas station in Florida, you’ll want to look into equipment financing. Many equipment loans do require a 20% down payment. However, some lenders may offer full financing without money down if you meet their requirements.

Equipment loans can be a good option as the equipment acts as collateral. In other words, the equipment is an asset that secures the loan. This reduces the lender’s risk as they can seize the equipment if you end up not paying back the loan.

How to Get a Loan to Buy a Business in Florida

It can be a lot of work figuring out how to buy a gas station in Florida. Getting the right financing with no to low down payment can be a major help. To get a business loan to buy a business in Florida:

• Build personal and business credit
• Research multiple lenders and types of loans
• Get your documents ready for review
• Have a solid business plan
• Compare different markets

That way, you know whether you have a better shot at having a gas station somewhere in Broward County or the city of Ocala. Just remember that eligibility requirements vary, and it can be very difficult to get approved for a business loan with no money down. It may not be impossible but know what you’re up against. Be prepared for potentially higher interest rates and make sure your business plan and goals support the loan repayment.

FAQs About How to Buy a Gas Station in Florida

How Do You Get a Business Loan to Buy a Business in Florida?

If you’re looking to buy a business in Florida, you can look into small business loans from the SBA or online lenders. Some businesses can be more challenging than others, like trying to figure out how to buy a gas station in Florida.

How Much Does It Cost to Open a Gas Station in Florida?

The general cost of opening a gas station can range from $500,000 to $3 million, according to Zen Business. Specific costs for Florida will depend on whether it’s branded like a Circle K or Exxon or unbranded, commercial real estate costs, etc. Lenders can help you with how to buy a gas station in Florida.

Is it a Good Idea to Invest in a Gas Station?

If you’ve done your research, investing in a gas station can be a smart idea especially if there’s a convenience store and other amenities and services provided. Check out locations that can make sense, so you know how to buy a gas station in Florida, California, or somewhere else that makes sense.

How Profitable Is Owning a Gas Station?

Owning a gas station typically isn’t very profitable, with profit margins around 1%. Many gas station owners earn more through having a convenience store or car wash.

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