PrimeRates provides access to personalized business loan offers through our simple and quick pre-qualification application. Once you’re pre-qualified, you can select the best offer for you and finalize the business loan application with the lender.
1
Our simple application takes less than 5-7 minutes to complete.
2
Choose the offer that best fits your needs by comparing loan amounts and terms.
3
Finalize your loan offer with the lender you selected to receive your funds.
While many people head to the supermarket to buy their groceries for the week, the need for convenience stores will never go away. While the big stores like Walmart may have everything, popping in to grab an ingredient you forgot just isn’t practical. That’s when you head to the c store.
Like any business, properly financing a C store may only be possible with extra funding in the form of a loan, and luckily there are a number of options available to any aspiring convenience store owner.
There are a number of steps that need to be taken in order to start a convenience store:
Of course, there are a huge number of other steps, such as buying or leasing premises and obtaining stock, but these are the main legal steps you need to take.
Convenience stores can be profitable and have steady growth potential. C stores now account for around one-third of retail outlets in America, having doubled over the last 30 years. With a successful convenience store, it is likely that you will eventually be able to expand your business into a number of locations. Because they are essential, they also are much more likely to stand the test of time, unlike so many other retail businesses that have to compete with the likes of Amazon.
There are a number of reasons why a C store may need to look for financing. These include:
There are various types of loans that are available to you as a convenience store owner depending on your exact needs.
Conventional loans are those that are typically offered by banks. As they are not guaranteed the bank is more at risk and so they usually require a higher credit score to gain approval. Therefore, these are a great option if you have good to great credit with a well-established convenience store and steady revenue.
Conventional loans typically offer interest rates ranging from 5% to 10% with terms anywhere between 1 and 25 years.
SBA loans are the most desirable type of loan for many small business owners. With this type of loan, the Small Business Administration guarantees a large percentage of the loan, usually 75-85%, so that lenders are at less risk if the borrower defaults on loan repayments. However, because of this, SBA loans come with particularly strict qualification requirements and the application process can take a relatively long time.
SBA loans offer competitive interest rates ranging from 6% to 8% with repayment terms ranging from 7 to 25 years.
Another option available for C store financing is asset-based lines of credit. These can either be revolving or term loans and, as the name suggests, are secured by assets, for instance, real estate, accounts receivable, equipment, or inventory.
This type of convenience store financing has interest rates anywhere from 8% to 25% with terms ranging from as little as 6 months right up to 3 years.
A merchant cash advance is a type of financing where a merchant cash provider will advance funds to a convenience store owner based on the financial history of their business, particularly credit card sales.
This type of financing allows a business to secure short-term financing quickly, but it should only be considered as a last resort or if you have particularly bad credit. This is because of the particularly high-interest rates, ranging from 16% to a huge 100% with terms of 4 months to 2 years.
This final type of financing is an option for you if you wish to purchase an existing convenience store. With seller carry financing, you are able to negotiate a payment plan with the seller themselves, including the interest rate and terms, although sellers will typically want the total payment made to them within 3 to 5 years. In the best cases, they should even be able to give you the training to ensure that the C store remains a success.
In order to start a convenience store from scratch, expect initial costs to be around $50,000. This includes the price of leasing the business space, any branding and renovations that need to be completed, and the set-up of a payment system and other technologies. If there is any other equipment you need to purchase for extra services, such as payphones or photocopiers, this may add to the initial cost. You also need to have the capital for the most important part of a C store, the stock. This should be what the majority of your starting capital is put towards.
The exact cost, however, will depend largely on where your store is located, its size, the inventory you want to stock, and the amount you will pay your employees (including yourself).
Having experience with working in this type of store, preferably in a managerial role, will help when it comes to running a successful convenience store. Alternatively, experience running another type of business or retail store will be beneficial.
It can also put you a step ahead if you build up a solid relationship with members of the community where your C store is located as a good reputation and word of mouth can account for a lot.
If you need funding to acquire business equipment your best option is convenience store equipment financing. With this type of funding, an equipment financing company will pay a majority of the price of your required equipment, leaving you to cover the rest, typically 10-20%. In some cases, they may even cover the total price. You will then make repayments like you would a traditional loan, with interest, until the equipment is fully paid for.
Equipment financing also holds the benefit that the equipment itself serves as collateral so, if you default on repayments for whatever reason, the equipment financing company will simply seize and liquidate the equipment to get their money back. With this security, equipment financing generally comes with desirable rates and can be easier to qualify for than other finance options.
As the most popular items, convenience stores tend to sell a lot of tobacco products, alcoholic beverages, soft drinks, personal hygiene items and toiletries, and snacks such as chips and candy. Lottery tickets are also very popular when sold in C stores, as well as food staples like bread and milk.
As long as you are in a convenient location, C stores will always be popular for consumers, however, in order to increase sales and stand out from the competition, it is beneficial to offer anything that will save your customers time and offer further conveniences, such as a drive-through service for food and drink and an in-store ATM.
Typically, profitable convenience stores have an average profit margin of $450,000 plus. With profit margins like these, it is more likely that you will gain the opportunity to expand your business to other locations and further increase your profits.
Exactly how you apply for convenience store financing will depend primarily on the type of loan you choose and the amount of funding you are hoping to secure. That being said, all loans typically require:
A convenience store is a good business to own as there will always be a need for them, especially with convenience becoming more of a priority for younger generations. With good knowledge and a drive to achieve success, a C store can be a very profitable venture, especially with the right financing.
At PrimeRates, we can help you quickly find the loan offers that are the best for you and your business so that you can easily compare lenders, loan amounts, interest rates, and terms. A major part of finding the best form of financing for you is ensuring it’s affordable and won’t eat into your profits – so to find the best business loans for c store financing, click here to compare potential business loans today.
The prime rate forecast for 2026 is one of the most closely watched financial data points of the year — and for good reason. Every
The SBA 7(a) loan is the gold standard of small business financing for a reason. Backed by the U.S. Small Business Administration, these loans offer
If you have a credit card, a mortgage, a personal loan, or any kind of variable-rate debt, the prime rate is quietly shaping how much
Every time the Federal Reserve adjusts interest rates, financial headlines light up with talk about the prime rate. But what does that actually mean for
If you have spent any time reading about interest rates, you have probably seen three terms used almost interchangeably: the prime rate, the federal funds
The prime rate has been the backbone of American consumer lending for the better part of a century. Today it sits at 6.75 percent. In