Owner Expands Gas Station & C-Store with Liquor Store Addition
Learn how we were able to finance this deal for a business owner looking to expand his business with creative solutions.Â
Loan Amount
$825,000
Loan Purpose
The Small Business
Gas Station & Convenience Store | Idalou, TX
The Financing Challenge
The owner of a gas station and convenience store faced a challenge to secure financing due to the laws in Texas and his interest in expanding into a liquor store. He needed to be creative when it came to the space and had to create a separation in order to sell off the existing inventory. The borrower set up a second area that was adjacent to the existing building and placed a wall between them to be able to sell liquor. He could only sell beer and wine and had to find a way to sell off the liquor. He was stuck because it was eventually shut down and was left with a large amount of excess inventory that he was unable to sell. The borrower had other challenges, including past bankruptcies, a declining trend in gallons of gas sold per year, very little liquidity (less than 10k), and a low down payment.
SBA 7(a) Loan Scenario
Here's what our borrower brought to Ready Capital
Decreasing Gallons Sold
The number of gallons sold had decreased but it did not affect revenue.
Industry Expertise
The borrower had previous management experience working at the company and it reflected a valuable understanding of the industry.
Positive Outside Income
Additional income generated from rental of the car wash and the restaurant inside the convenience store.
CREATIVE SOLUTION
Reliable Results
- The business was able to successfully expand into a liquor store and sell existing inventory.
- The borrower was able to secure financing and get the deal done to reach his end goal after being declined by another lender.
- The borrower gained the ability to finance more inventory to increase overall future revenue.
The Non-Bank SBA Preferred Lender Difference
A small business loan is not an empty box like a checking or savings account. No two small businesses are alike when it comes to their financing needs. This means that small business financing requires out-of-the-box thinking and capabilities many banks simply can’t offer.
Ready Capital is a non-bank, SBA preferred lending partner (PLP). We speak fluent small business and have the process in place to help them reach their goals the first time.