Meeting the Equipment needs of fuel stations

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Across Australia goods, people, raw materials and animals are transported daily whether on the school run or across states, all reliant on fuel to get them there. This case study shares more on how fuel stations manage their finances to provide the assets that are needed.

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 At the last estimate there are over 6000 fuel stations, with a third owned and operated by the major fuel retailers. The remainder are run independently. Our client owns 21 stations and is a wholesale fuel supplier in rural areas of NSW and VIC.

Margins on petrol are low, around 2%, so most business owners augment their income from other services. The other way to build revenue is to own a larger number of stations. Being part of a franchise requires around $250,000 to operate a single station and a further $160,000 for stock.

The types of assets that each service station hold varies enormously from those with shops needing refridgeration, workshops with mechanics tools and safety equipment to items on the forecourt itself - pumps, tanks and signage.

Whether replacing worn out equipment or taking on a new location, getting the finance in place can go beyond referring to the bank. By using a local broker there is much more choice available on the best options suited to the asset type and business need.

Barradeencapital have been helping this client for several years. With a complex business set up of five different trading entities, the broker has been able to provide guidance on lenders and solutions.

When the client needed a new 3d electronic fuel signboard, costing around $140,000, Barradeencapital recommended a secure loan over 60 months with Classic Funding Group.

Find out more about how Classic Funding Group can finance service station assets.

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