Loans by property
Convenience store loans
A convenience store loan helps you buy or refinance a c-store, secured by the store's real estate. The lender looks closely at inside sales and margins: groceries, drinks, beer and wine, tobacco, food and lottery commission. Clean point-of-sale records and tax returns that match them are what get these loans approved.
Underwriting
How lenders read a c-store's income.
Inside sales, by category
Lenders like POS reports that split categories, because margins differ a lot between drinks, food, tobacco and groceries.
Gross margin, not sales
The lender works from sales minus cost of goods. Keep vendor invoices organized.
Beer and wine
A strong category, but only if the license stays with the store.
Lottery and services
Lottery commission, ATM fees, money orders and bill pay add steady income. Keep the statements.
Food service
Hot food and coffee can lift margins. Show the trend.
Reported vs. real
If sales are not on the tax return, the lender cannot count them.
With or without fuel
With fuel or without: what changes.
| Topic | C-store with fuel | C-store without fuel |
|---|---|---|
| Main income | Inside sales plus fuel margin | Inside sales only |
| Environmental | Tanks: Phase I always, plus tank records | Usually simpler, but a Phase I is still common |
| Property | Single-use station | Easier to re-use as retail |
| What lenders check most | Gallons, margin, supply agreement | Category margins, lease, license |
Buying a c-store
What to check before you buy.
- The liquor license. Can the store keep it? Transfers go through California's Department of Alcoholic Beverage Control, and the timeline can affect your closing.
- The lease, if any part of the site is leased: term left, renewal options, rent increases.
- Franchise rules, if the store is part of a chain: approval of a new owner, fees, remodel requirements.
- Inventory, counted at closing and usually paid separately.
- The books. Compare 3 years of tax returns to the POS reports.
Documents to have ready
- 3 years of business and personal tax returns
- 12 to 24 months of POS reports by category
- Lottery and ATM statements
- Licenses: beer and wine, tobacco, lottery
- Lease and franchise agreements, if any
- Purchase agreement (for a purchase)
See also: buying a station and the business loan calculator.
FAQ
C-store loan questions.
Does the beer and wine license affect the loan?
Yes. Beer and wine is often one of the store's best categories. If the license cannot transfer, the store may be worth less, and the lender will notice.
Is lottery income counted?
Lottery commission can count when it is documented and steady. Bring the statements. Ticket sales themselves are not your income.
Tell Shawn about your station.
Buying, refinancing or building, the first step is the same: a short call about the property, the numbers and your timeline.