Tips for Buying Loan for Petrol Stations
Are you looking for a petrol station or already own one and need some finance to borrow or expand your existing business? Financing these types of properties is not always so simple. Lenders view petrol stations as specialized commercial property assets, which describes that the maximum value that some lenders will finance is much lower than the standard commercial property.
Finance for petrol stations have been difficult, specifically when the borrower does not have 3 years of trading history. If the borrower has experience in the retail sector, then finance is available as commercial mortgage to fund the purchase of a petrol station. Therefore, if even an applicant has not owned and managed a petrol station in the past, the finance will be till available.
The level of funding available for petrol station purchase will be dependent on the type of the business as:
- Going Concern/Freehold Petrol Station: In a freehold agreement, you own the business and land, which means that the lender is willing to lend you more in comparison to the value of the commercial property or high loan-to-valuation ratio (LVR). If you possess the physical property (freehold), having a lease agreement is in place with the landlord and an agreed rental amount is paid. Funding is accessible up to a maximum of 50% of the purchase price of the businesses less than $ 2 million, with available interest options and full repayment terms up to 15 years.
- Leasehold Petrol Station: Leasehold simply refers to owing a business of the service station, which means that you don’t own the land on which you are operating and will be paying rent to the landlord. If you possess only the business constituent, then have a lease agreement in place with the landlord (freehold owner) and an agreed rental amount is paid. Funding is accessible up to a maximum of 50% of the purchase price for businesses less than $ 2 million and the interest is available depending upon the strength of the application.
- Freehold Investment Petrol Station: If you own the physical property while the business is possessed by leasehold (third party), then a lease agreement will be in place, which outlines the rental amount and terms of the lease. Cash flow is generated through rental income. Funding is accessible up to 70% of the value of freehold service stations, with available interest options and full repayment terms up to 15 years.
Global Capital Commercial has a number of lenders, who have appetite to lend finance to the borrowers, who are looking to purchase a petrol station. They provide leading financial solutions for specialized property at competitive rates. If you want to get more information about Loans for Petrol Station, then Contact us today for more insights!
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