Daily Archives: 07/05/2016

The type of services that matters

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In depth study is required in order to get the complete concept of the financing. The financer are one ones that have to ensure that that the loan that they are giving are in safe hands. Every financer will prefer to finance the gas station that is established and running. The running businesses are one of the attractions to the money lenders; they seek potential of profit from the running businesses. When it comes to gas station financing there are number of questions that are to be asked from owner. The capacity of the gas station is at the top. The next factor is the type of services. For service stations the type of services is very important. At a gas station there are other services that can also be offered as well. Like a gas station can also offer washing services as well. Some of the gas stations also have mechanical services as well. One of the most common features is the convenience stores. The convenience stores are common businesses that are established along with the gas stations. These convenience stores are good source of income for the gas station owners.

When it comes to the margin of profit between the gas station and the convenience store, the store can generate more profit. The advantage of having a convenience store at the gas station is that there is no additional cost that is required to operate the business. The platform is already set for the business, the space and the location is already available at the gas station. For gas station lenders having a convenience store is always a plus point. The next consideration is the type of services that are offered at a convenience store. Sometimes there are only groceries that are offered. The financers keep an eye on the services because it can increase the margin of profit as well. At a convenience store there can be multiple sections as well. Each section can have different rate of return.

When the estimation about the total value of the gas station is done, additional advantage is given to the section developed in a convenience store. Some of the convenience stores don’t offer much to the clients. In that case the convenience store is not considered as the running business. Some of the applicants might have a type of store that is at the initial level like it may be just a beginning of a convenience store. The startups may not be too impressive for the gas station lenders because there is high amount of the risk involved. In case of established businesses, there is nothing to worry about the operations of the business. If the business operations are running fine and it is also reflected through the documents like the returns, then it is easier for the lender to decide. In most of the cases, the decision is in favor of the gas station owners. Otherwise the case may be rejected.