Gas stations combine a fuel business and a store, plus tanks, pumps and sometimes real estate. Palmwick Lending, a small-business funding service in Kokomo, Indiana, helps station owners and buyers match each bill to a structure; lending partners review each request and decide.
| Gasoline stations, county | 44 (County Business Patterns 2023, NAICS4471) |
|---|---|
| Convenience stores, county | 17 (County Business Patterns 2023, NAICS445120) |
| Station employers at ZIP 46901 | 21 (ZBP 2023) |
| Station payroll, county | $6.8 million (CBP 2023) |
How a Station's Cash Works
A gas station is two businesses under one canopy. Fuel is a volume business, and each fuel delivery is a large bill. The store sells snacks, drinks and similar goods and carries its own stock and shrink. Card fees apply to both. On top of that are tanks, dispensers, coolers and the building itself, each a long-lived asset with its own replacement cost.
Gas Station Financing Requirements
Partners publish no single checklist, but a gas station business loan review commonly covers:
- Fuel gallons and inside-store sales for recent years, separated.
- Fuel supply agreement terms and any brand or supplier obligations.
- Tax returns and bank statements.
- Environmental reports on the tanks and site, especially for a purchase.
- The lease or deed, and the age and condition of tanks and dispensers.
Environmental history is a specific concern for stations with tanks. A partner may require a site assessment before funding a purchase.
How to Buy a Gas Station Business Without Overpaying for Gallons
Small business loans for a gas station purchase usually take the form of a term loan, sometimes alongside real estate financing if the land comes with the business. A commercial loan for a gas station is reviewed on the station's history, the buyer's experience running a store, the down payment and the price. Buyers should separate what they are paying for fuel volume, store sales, equipment, inventory and real estate; each is valued differently.
Our blog post on buying a gas station in Howard County, Indiana goes step by step, and the loan-to-buy-a-business calculator estimates the monthly payment at any price, rate and term.
Convenience Store Business Loans and Store Inventory
A business loan for a convenience store, or for the store inside a station, can pay for stock and coolers. Inventory financing covers stock bought ahead of sales, and equipment financing covers coolers, ice machines and food-service equipment. Store stock bought for resale is also where Indiana's resale exemption paperwork comes in; the Form ST-105 guide explains it.
Equipment at the Pump and Inside the Store
Dispensers, card readers, canopy lighting, tank monitoring systems, walk-in coolers, ice machines and food-service equipment each have their own useful life. When a station needs one replaced, equipment financing or a lease is worth comparing with stretching a store's working capital. Buyers should list which equipment is near the end of its life, because the replacement cost affects what the purchase is worth to the buyer.
How to Get Funding for a Gas Station: Illustrative Arithmetic
Hypothetical figures for illustration only. A station sells 60,000 gallons a month at a margin of 25 cents a gallon, earning $15,000 on fuel, and $40,000 of inside sales at a 30% margin, earning $12,000. In this example fuel earns more margin, but the store contributes almost as much. A partner reviewing a purchase looks at both lines, because a buyer who prices the station on fuel revenue alone can overpay.
The Supply Agreement in a Purchase
Many stations operate under a fuel supply agreement with a brand or distributor. On a sale, the agreement may need the supplier's consent, may require repayment of incentives the seller received, or may set minimum purchase volumes the buyer must meet. Ask for the full agreement early. A partner will read it, because a supply agreement that cannot be assigned can stop a deal late.
Howard County, IN Stations in the Census Counts
County Business Patterns counted 44 gasoline stations (NAICS 4471) as employer establishments in Howard County, IN in 2023, employing 294 people with $6.8 million in payroll; 40.9% had fewer than five employees. Another 17 convenience stores without fuel (NAICS 445120) employed 101, and 58.8% of them had fewer than five employees.
ZIP Code Business Patterns placed 21 gasoline stations and 14 convenience stores at ZIP 46901 addresses in 2023. Nonemployer Statistics counted 6 no-payroll convenience stores in 2024 (NAICS 44513); no no-payroll gasoline station count was published for the county.
Related pages: retail stores and boutiques, auto repair shops, the industries page and the Kokomo, IN page.
By Palmwick Lending · Updated