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02-28-2016, 03:03 PM #1
- Join Date
- Apr 2014
- Posts
- 781
question on cc split advance
Is the ratio of gross revenue to monthly higher with a cc split over ach. I have a gas station open 2 months who wants a cc split. He does over 100k month. I'm not referring it to be told not enough time in business. He bought an existing gas station but doesn't have the prior banks...only gas receits.
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02-29-2016, 10:14 AM #2
- Join Date
- May 2013
- Posts
- 67
For a Gas Station I would say no. Gas is tough because the margins are so low. If there is no C-store or repair shop attached, I would not go more than 5-6% of gross for more than 4-6 months. (depending on his current ending balances and credit situation of course)
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02-29-2016, 11:26 AM #3
Rookies get all excited with gas stations, because they see huge volume in the banks. But with Gas stations, they are only making between .05-.15 cents on the dollar. All that money coming in is going right to the oil company (Shell, Exxon, BP, etc). Straight up gas stations don't make a ton of money...which is why you have seen the growth of convenience & fast food chains emerging alongside (THAT is where the merchant makes their money)
So the ratio or % you are referring to get thrown all out of whack with a gas station. An MCA simply cannot take 20-30% of the CC's...the merchant would be at a loss on a daily basis. They would have no choice but to turn you off and default.
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02-29-2016, 11:32 AM #4
We will fund gas station with convenience store but not a gas station alone. Due to what Chambo stated ^^^ profit margins of 5-6% on gas roughly. Had an unbranded gas station apply and we still stayed away.
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02-29-2016, 12:17 PM #5
- Join Date
- Nov 2013
- Posts
- 598
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02-29-2016, 01:54 PM #6
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03-05-2016, 09:18 PM #7
- Join Date
- Apr 2014
- Posts
- 781
According to owner he claims his margins on diesel sales us quite high.
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