Re: Can I get a loan to purchase a petrol station?
Posted: Mon Mar 16, 2015 11:43 am
Hi and welcome to the forums rickieg.
It may be possible for you to get a commercial loan for a service station. Purchasing a petrol station is a popular investment among smaller investors because of its secure return.
However, lenders may hesitate lending for such an investment because they tend to see service stations as a specialised property - they may find difficulty selling the property if you are not able to make the repayments of the loan.
You may still be able to borrow up to 50% to 60% of the property value. It should be noted that the lenders generally require a business plan and profit forecasting for the service station. You may even be able to get interest rate discounts, however, it will largely depend upon the lender and your financial situation.
Are you planning on leasing the land for the business or buying it off as well?
Cheers,
Otto
It may be possible for you to get a commercial loan for a service station. Purchasing a petrol station is a popular investment among smaller investors because of its secure return.
However, lenders may hesitate lending for such an investment because they tend to see service stations as a specialised property - they may find difficulty selling the property if you are not able to make the repayments of the loan.
You may still be able to borrow up to 50% to 60% of the property value. It should be noted that the lenders generally require a business plan and profit forecasting for the service station. You may even be able to get interest rate discounts, however, it will largely depend upon the lender and your financial situation.
Are you planning on leasing the land for the business or buying it off as well?
Cheers,
Otto