C-store
Convenience store financing
Some buyers are really buying a store. The fuel is secondary, or there is none at all. That changes what the lender underwrites, which programmes fit, and — if there are no tanks — removes the single biggest source of delay in this whole category.
Step 1 of 5
Buy or refinance commercial property
About the property
Start with what it is and what you're trying to do.
When the store is the business
On a fuel site, lenders usually look at gallons first. On a store-led deal, they look at inside sales and the margin on them — which is often the healthier of the two numbers anyway, because fuel is a low-margin, high-volume business and the store is the opposite.
If the site has no underground storage tanks, the environmental review is usually far lighter and the timeline shortens accordingly. This is the main practical reason a store-only purchase can move faster than a station purchase of the same size.
The structures are the same three as any site business: the real estate and the business together, the business alone on a lease, or the property alone. What is being sold still has to be settled in writing before anything else, and the price still has to be allocated between real estate, equipment, inventory and goodwill.
Where the store does sell fuel, you are back in station territory for the tanks and the supply agreement even though the store drives the earnings. Say so early — it changes the document list, not the arithmetic.
What a lender examines
Inside sales and margin
The core number on a store-led file. Lenders read it from POS reports and returns, and they look at the mix — tobacco, beer, food service and lottery behave very differently.
Food service
A kitchen, a deli or a branded quick-service counter changes the margin profile and can change the programme. It also brings its own permits.
Lease or ownership
Whether the real estate is included. On a lease, the term, the assignability and the rent relative to sales all matter.
Fuel, if any
If there are pumps, tank condition and the supply agreement come back into the file even though the store is the business.
Licences
Beer and wine, tobacco, lottery and food service permits, and whether they transfer to you or have to be applied for fresh.
Your experience and credit
Retail operating experience, your credit profile, and the cash you are putting in.
Working capital
Shelves have to be stocked on day one. Lenders look for reserves beyond the purchase price.
Questions buyers ask
Is a store without fuel easier to finance?
Often it is simpler, mainly because there are no underground storage tanks and so the environmental review is usually much lighter. That removes the biggest single source of delay on fuel property. It does not automatically mean better terms — the lender still underwrites the earnings, the lease and you — but the process tends to be shorter and more predictable.
Do the beer and lottery licences transfer?
It depends entirely on your state and the licence. Some transfer with the business, some require a fresh application in your name, and some have a waiting period that is longer than your closing timeline. This catches buyers out regularly. Find out which applies where the store is before you set a closing date, because a store that cannot sell beer on day one is worth less than the one you agreed to buy.
What if the store is inside a gas station I am also buying?
Then it is a station purchase and the store is part of it. The tanks, the supply agreement and the environmental review all come back into the file. It is still worth separating the two revenue streams in your own analysis, because lenders do — but the process follows the station path.
Can I finance a store that needs a remodel?
Often, but the cost has to be in the plan from the beginning rather than discovered afterwards. A lender sizing a loan for a purchase alone will not simply add renovation money later. If you intend to remodel, refit the coolers or add food service, say so at the start so the file is built for it.
Are you the lender?
No. Biscayne Lending is a financing company that arranges financing through its private funding network and other capital sources; we are not the creditor on your loan. The lender on your transaction is named to you in writing before you sign, and your terms are set by that lender after underwriting.
Who this page is for
- A buyer purchasing a convenience store with or without fuel.
- An operator adding a second store.
- Someone buying a store inside a strip centre or on a leased site.
- An owner refinancing a store they already run.
- A buyer planning a remodel, a cooler refit or added food service.
What the money is used for
- The purchase of the store business, the property, or both.
- Opening inventory and working capital.
- Remodels, cooler and shelving refits, and point-of-sale systems.
- Adding or upgrading food service.
- Refinancing existing debt on a store you already own.
- Closing costs and professional fees.
The words you will hear
- Inside sales
- Everything sold in the store. The main earnings number on a store-led deal.
- Sales mix
- How the sales break down — tobacco, beer, snacks, food service, lottery. Margins differ sharply between them, so two stores with the same revenue are not equally profitable.
- Food service
- Prepared food, from a coffee counter to a full kitchen. Higher margin, more equipment, more permits.
- Goodwill
- The part of the price that is not tangible property or inventory. How the purchase agreement allocates it affects the financing.
- Assignability
- Whether a lease or a licence can pass to you. On a business-only purchase this is the question that decides everything.
- FF&E
- Furniture, fixtures and equipment — coolers, shelving, POS. Usually part of the collateral and part of the price allocation.
Three versions of the same purchase
Illustrative structures, not offers or terms available to you.
Store and property together
The real estate anchors the loan and the store's earnings support the payment. Usually the most straightforward version, and the one with the widest set of lenders.
Store only, on a lease
No real estate collateral, so the lease carries the file. Lenders will want a term at least as long as the loan and a clean assignment. A landlord who will not consent can end the deal.
Store needing a refit
Coolers, shelving and a food service build-out added to a purchase. The work has to be scoped and priced at the outset so the loan is sized for both parts rather than for the purchase alone.
What to gather now
- Purchase agreement with the price allocation.
- Two to three years of returns plus year-to-date financials.
- POS reports showing sales by category and margin.
- The lease, with the assignment clause, if the property is not included.
- A list of licences held, and their transfer status in your state.
- An equipment list, with ages.
- Any fuel supply agreement and tank records, if there are pumps.
- Entity documents, personal financial statement and ID.
How it runs
- 1
Settle what is being sold
Business, property, or both — with the price allocated in the agreement.
- 2
Get the sales detail
Not just revenue: the category mix and the margin. This is what the file is built on.
- 3
Check the licences early
Transfer rules and waiting periods vary by state and routinely outlast a planned closing date.
- 4
Confirm the lease
Term and assignability, in writing from the landlord, on any business-only purchase.
- 5
Place the file
We take it to the capital sources that write store and site businesses.
- 6
Diligence and close
Valuation, equipment review, lender conditions, then closing with inventory settled.
What goes wrong
Assuming the licences come with the store
Some do, some do not, and some take months. This is the most common avoidable problem on a store purchase.
Reading revenue instead of margin
Two stores with identical sales can have very different profits depending on the mix. Tobacco volume is not food service margin.
Forgetting the landlord
On a business-only deal the landlord's consent to assign is not a formality, and it is not yours to assume.
Budgeting the purchase but not the shelves
Inventory and working capital are real money and they are needed immediately.
Related pages
Tell us about the store
Location, whether the property is included, annual inside sales and whether there is fuel — that is enough to start.
Step 1 of 5
Buy or refinance commercial property
About the property
Start with what it is and what you're trying to do.
This is not an offer and not an approval. Terms are set by a lender, in writing, after underwriting, and vary by lender, by property and by file.
Buying or refinancing a store?
Send the numbers you have. We will tell you which structure fits and what the file will need.