Loans by purpose
Gas station refinance and cash-out loans
A gas station refinance replaces your current loan with a new one secured by the station. Owners refinance to lower the payment, pay off a seller note or a maturing loan, or fund upgrades. The new loan is sized on today's cash flow and appraisal, and the lender will want a current environmental review.
When it fits
When a refinance makes sense, and when it doesn't.
Good reasons to refinance
- Your loan is maturing or has a balloon coming due.
- You bought with a seller note and now have the track record to replace it.
- Your payment is too high because the amortization is short.
- You need money for the station: tanks, dispensers, canopy, store remodel, car wash or EV chargers.
- You want to buy out a partner.
When it may not make sense
- Your current loan has a large prepayment penalty. Do the math first.
- Your sales dropped since you bought. The new loan is sized on today's numbers.
- Your tanks or environmental status changed since the last loan. Fix that first.
Upgrades
Funding upgrades.
Upgrades often pay for themselves through higher gallons or inside sales. Tell the lender what the cash is for: a clear plan with quotes reads much better than "working capital".
- Tank replacement or tank system upgrades. Required in California if the station still had single-walled tanks after December 31, 2025 (State Water Board).
- New dispensers and card readers
- Canopy and LED lighting
- Store remodel, food service, coolers
- Adding a car wash
- EV chargers and the power upgrade they need
Prepayment penalty
Read your current note first.
Many commercial loans charge a fee if you pay early. Look for words like "prepayment premium", "step-down" or "yield maintenance" in your note. Get a payoff statement before you compare offers. Our own terms: the property loan has a 5% / 3% / 1% prepayment penalty in years 1 to 3 and none after; the business loan has none.
Same loan amount and rate, two schedules: a 15-year amortization has a much higher monthly payment than a 25-year one, because the principal is repaid faster. A longer amortization lowers the payment and raises the DSCR. Compare with the payment calculator.
What the lender will look at
- 3 years of tax returns and current financials
- Monthly gallons, fuel margin and inside sales
- Your current loan statement and note
- The fuel supply agreement, especially if it renews soon
- The last Phase I, tank records, any open cleanup case. A new or updated Phase I is usually required.
- A new appraisal
FAQ
Refinance questions.
Can I refinance a gas station with an open environmental case?
Sometimes. It depends on the size of the problem, who is paying to clean it up, and how far along the cleanup is. If the UST Cleanup Fund is involved, bring the paperwork (State Water Board).
How soon after buying can I refinance?
It depends on the lender and on your current loan's prepayment terms. Lenders like to see at least a year of your own results.
Can I refinance to buy out my partner?
Often yes, if the cash flow supports the new loan and the partner signs off.
Loan maturing or seller note due? Call Shawn early.
Buying, refinancing or building, the first step is the same: a short call about the property, the numbers and your timeline.