Hazelgrove Lending Group, based in Redding, CA, explains how gas station and convenience store owners in Shasta County approach funding: separating inventory, equipment and site needs, what partners review for an existing station or a new one, the fuel supply agreement, and why environmental records matter. Shasta County counted 95 gasoline stations with employees in 2023.
Three needs, three structures
| Need | What it looks like | Structure to compare |
|---|---|---|
| Stock | Fuel loads, snacks, drinks, supplies | Inventory financing |
| Equipment | Dispensers, coolers, a car wash, POS | Equipment financing |
| Site | A remodel, a canopy, buying a station | Term loan |
Mixing them is how stations get into trouble: paying for a remodel from the fuel account leaves nothing for the next delivery, and paying for fuel from a long-term loan means paying for it for years after it burns.
Stations in Shasta County, CA
County Business Patterns counted 95 gasoline stations with employees in Shasta County in 2023, and only 20 (21.1%) had fewer than five employees, compared with 52.7% of all employer establishments in the county. The same count found 10 convenience stores without fuel. The gas station page covers the sector in more detail.
Inventory: fuel and the store
Fuel arrives by the load; the store's stock arrives and sells on a different rhythm. A convenience store business loan for shelf stock and a fuel arrangement can be separate conversations, because fuel deliveries and shelf restocking follow different rhythms. Some owners carry fuel on a line of credit and store stock through inventory financing; others use one line for both. Size either to the overlap between deliveries, not to a month of purchases.
Buying an existing station
Partners reviewing a purchase read the seller's fuel volumes, store sales, supply agreement and environmental records alongside the buyer's experience. A term loan is the usual structure for the purchase, with separate funding for equipment upgrades. Ask the seller early for the tank records; delays there hold up everything else.
How to get a loan to open a gas station
Opening a new station is a harder request than buying one, because there are no sales records to read. Partners look instead at the operator's experience running stations, the fuel supplier's commitment, the site and the full budget. Convenience store loans for a brand-new store face the same question: what evidence is there that sales will cover the payments?
If the plan depends on projections alone, expect partners to ask for more of the owner's own money in the project, or to consider only parts of it, such as equipment.
Questions for the fuel supplier
- What does the supply agreement require in volume, and what happens if you fall short?
- Who owns the dispensers, signs and tanks, and who pays to maintain them?
- Are there incentives or rebates that must be repaid if the agreement ends early?
- How are fuel payments taken, and how quickly after delivery?
Partners read the supply agreement closely because it shapes both the station's costs and its obligations. Unrepaid incentives or minimum-volume penalties can change how much a station can safely borrow.
Card fees and the overlap between loads
Every card sale arrives later and smaller by the processing fee. When you work out how much inventory funding you need, start from deposits net of fees and add the settlement days to the time each load takes to sell. That gives a truer picture of how much money is out at once than the fuel invoice alone.
Records to have ready
- Fuel volume and store sales reports
- Card settlement reports and bank statements
- The fuel supply agreement
- The lease or deed
- Environmental and tank records
- Quotes for any equipment
See the Redding, CA page for county figures and the blog for more articles.
