CFACommercial Funding Advisory

Food & Beverage

Business Funding for Convenience Stores

Convenience stores require constant inventory replenishment across hundreds of SKUs. Tobacco, lottery, and fuel margins are slim, so profitability depends on volume and high-margin items like prepared food and beverages. Buying an existing location with an established customer base is often smarter than building from scratch, but acquisition costs are steep.

Common Uses

What Convenience Stores Use Funding For

  • Purchase an existing convenience store location with inventory and equipment
  • Install or upgrade fuel pumps, underground tanks, and canopy structures
  • Stock initial inventory across tobacco, beverages, snacks, and lottery
  • Renovate the store layout and add a prepared food or coffee service area

Funding Options

Best Funding Types for Convenience Stores

SBA 7(a) Loan

The most common funding source for buying an existing convenience store. SBA loans allow you to finance the business acquisition including goodwill, inventory, and equipment in a single loan with a 10-year term.

Inventory Financing

Borrow against the value of your inventory to maintain stock levels without draining cash. This is especially useful for tobacco and beverage distributors that require large minimum orders.

Merchant Cash Advance

Convenience stores with high daily card transaction volume qualify easily for MCAs. Use one for a quick remodel, new signage, or to stock up before a high-traffic holiday weekend.

What Lenders Look For

Qualification Notes for Convenience Stores

Tobacco licenses, lottery retailer permits, and fuel permits must all be current and transferable if you are buying an existing store
Lenders will scrutinize your fuel supplier contracts and wholesale agreements to verify cost of goods
Stores with fuel pumps undergo environmental assessments, and any tank compliance issues will delay funding

Ready to Explore Funding for Your Convenience Store Business?

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