There was a time when gas stations were looked upon as small marketplaces that had corner stores. Today, this very perception about gas stations has changed as they are now looked upon as convenience stores that sell gas.
The reason for this reversal of perception is because in the gas station business today, sale of gas generates much smaller revenue than what the convenience store generates.
In fact, you can afford to be in the gas business only if you make it a part of the convenience store. This is a high volume retail operation where you need a well-stocked inventory.
At the same time it is also labor-intensive to a large extent and so your overheads are always going to be a challenge to manage.
You can manage the operations well enough when the cash flow is normal but a disruption in your cash flow is always lurking around the corner.
When that happens you cannot afford to be caught unawares and that’s why having access to fast and easy direct lender funding is extremely important for your gas station business.
Small businesses don’t get easy access to funding
It’s not easy for most small businesses like gas stations to easily access funding on time. When you need cash urgently and your sources of credit are not able to provide it to you on time, it is not just disappointing but can harm your business adversely.
Most if not all traditional lenders are reluctant to fund small businesses because they have different lending priorities and policies.
It is pretty much commonplace for businesses to face cash flow disruptions at different points of time in their growth history and your gas station is no exception to this rule.
It is in these situations that you are going to need easy access to flexible and fast short term business loans to bridge the gap between income and expenditure.
It’s not that you won’t find anybody to borrow the money from. There are actually quite a few out there who would love to lend you the money but many of these are no better than loan sharks with whom you won’t like to deal.
Customers should never leave the gas station disappointed
Many small business owners fall in the high-interest debt traps of these loan sharks who then take over these businesses when the owners fail to pay back the loan on time.
There’s nothing to panic though because you can apply for funding at alternative lending agencies, which are reliable and offer easier terms and reasonable cost of funding.
In a gas station, you cannot afford to have customers leaving disappointed because they either didn’t get to fill their tanks or buy what they wanted from your convenience store.
Make sure to have your inventory stocked up, whether it is gasoline or diesel or items in your convenience store. Since many of your customers visit only the convenience store, this should be your top priority.
It is difficult to win customers in today’s highly competitive market, so when they come to your gas station, make sure you have most, if not all, of the stuff that they are likely to look for.
Look for ways to add value to your gas station for higher revenues
The gas station business offers a lot of scope for enterprising owners to find ways of adding value and increasing their sales and, thereby, earnings.
One of the easiest and best ways of monetizing your gas station other than selling gas and stuff in your convenience store is to rent out advertising space to marketers. Depending on the location of your gas station, you could earn significant revenues from this source.
Having a car wash at your gas station is an important addition to the value of everything you are offering to your customers. It is a convenience that your customers will appreciate.
If you have enough space at your gas station, look at ways to set up a unit for offering emergency basic servicing like a flat tire, battery recharge, and other minor repair work.
All of these require investments to set up, for which you can apply for cash advances from a reliable and flexible lending company.
Manage your overheads more effectively with reliable funding
At the gas station, delivery is automated in most outlets, and so the use of labor is limited for such functions. However, it is things like convenience stores, car wash, and emergency repair services, among others, that require a lot more labor.
There are other utilities like power, electrical maintenance, and others that add up substantially to your overheads. These are bills that you must pay to keep your business operational.
The most important overhead is, of course, your payroll expenses which you must clear at any cost, irrespective of your cash flow situation.
Every business has to be prepared for cash flow volatility, but that doesn’t mean digging into your savings to meet contingencies. In that case, it would be considered that you are managing fine and are not facing any shortage of funds.
FAQs
- I am running short of cash and may not be able to pay my wages this month. I just have a few days at hand. Can I get quick funding within a couple of days?
Yes, it is possible to get funded within a couple of days if your loan application meets all requirements for approval.
- Does it mean that there are chances of rejection of my loan application in your company?
Technically yes, there is a chance that your loan application could be rejected. However, that applies to applicants whom our evaluators identify as someone lacking the capacity to pay back the loan with interest.
- How do you assess the loan repayment capacity of an applicant?
Our evaluators use several scientific assessments to decide if a loan applicant has the capacity to repay the loan. One of the most important factors they consider is your cash flow status for the last 2-3 years.
- What if my cash flow was unstable and inconsistent 2-3 years from now?
That may or may not impact the assessment of your current cash flow, which is more relevant to your loan application for smaller unsecured funding.
