Business funding for convenience stores
Convenience stores run on high volume and thin margins, especially on tobacco and lottery, so a failed cooler or a big pre-holiday inventory buy can strain cash even when sales look steady. Card and cash deposits are usually frequent and consistent, which is what most funding for this trade is built around.
- One application, several lenders
- No credit pull to see your options
- No fee to you, ever
Common funding needs
- Repairing or replacing walk-in and reach-in coolers
- Buying inventory ahead of a holiday weekend
- Covering payroll through a slow stretch
- Upgrading POS or fuel pump equipment
What usually fits
Products that usually fit
- Merchant cash advance for an urgent cooler repair, repaid from daily card and cash sales.
- Working capital for a seasonal inventory buy.
- Equipment financing for coolers, POS systems and pumps.
- Line of credit for ongoing inventory and payroll swings.
How a merchant cash advance works for you, and when it is too expensive
A convenience store's MCA holdback is taken as a fixed percentage of daily card sales, which usually stay fairly steady but can dip after a big cash-heavy weekend or when tobacco and lottery sales soften. At an illustrative factor of 1.15–1.45, a $20,000 advance costs $23,000–$29,000 in total no matter how quickly it clears.
Because tobacco and lottery carry thin margins, the daily debit can eat into cash flow faster than it would in a higher-margin retail business. Compare the total cost with a line of credit or equipment financing on the specific repair before signing.
Compare term loans, lines of credit, cash advances and equipment financing side by side →
Separately, our sister company CELER Merchants offers card processing.
Illustrative example
A worked example
A store needs $25,000 for a holiday inventory buy plus a cooler repair. With working capital repaid over 12 months at an illustrative 10–20% a year, payments come to about $2,198–$2,316 per month, or $26,375–$27,790 in total.
The same $25,000 as a merchant cash advance at an illustrative factor of 1.20–1.35 means paying back $30,000–$33,750 from daily sales, typically within 6 to 10 months.
Illustrative example only, not an offer or a quote. Rates, fees and terms are set by each lender and depend on your business. Fees are not included unless stated.
Underwriting
What lenders look at
- Monthly card and cash deposits over 3 to 6 months
- Tobacco, lottery and fuel licensing in good standing
- Existing cash advances or daily debits on the account
- Age of coolers, pumps and POS equipment
- Owner credit
Honestly
Who this is not for
- A store that has not opened yet: most lenders want deposit history
- Stacking a second advance on top of one already being repaid
- Borrowing short-term, expensive money for equipment that will last many years
If borrowing does not make sense, we will say so.
Are you a match?
Lender network minimums
Close but not quite there? Apply anyway and we will tell you honestly what is possible.
*Best available terms from lenders in our network. Every lender sets its own criteria; approval, amount and funding time are decided by the lender and not guaranteed.
| Time in business | 1 year+ |
|---|---|
| Monthly bank deposits | $20,000+ |
| Credit score | 500+ |
| Bank account | Business |
| Fee to you | $0 |
| Credit pull to start | None |
FAQ
Convenience stores funding questions
Do lenders look at lottery and tobacco sales the same as other revenue?
They look at total deposits, but some lenders discount low-margin categories like tobacco and lottery since they contribute less profit per dollar of revenue.
Can I fund a fuel pump upgrade?
Yes, usually through equipment financing, sometimes tied to a fuel supplier or branding agreement.
What if my cooler fails and I need cash fast?
A merchant cash advance is often the fastest option in that situation. We will show the total dollar cost before you decide.
Can a store with multiple locations get one facility across all of them?
Sometimes, depending on the lender and how deposits are structured across locations. Tell us your setup.
Guides
Guides for convenience stores
Related
Similar businesses
Grocery stores · Liquor stores · Clothing boutiques · Furniture stores · Jewelry stores · Florists
Where we work: all US states · all Canadian provinces
See your options
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