Business loans for service stations: high turnover, thin margins and a tank that needs filling

Look at the books of a typical fuel and convenience site and one thing stands out. Millions of dollars pass through the registers each year, yet the business keeps only a small slice of it. Most of each litre’s price is the wholesale cost of fuel, excise and GST, which come in and go straight back out. The real profit sits in the margin per litre and, increasingly, in the shop.

That gap between turnover and profit is the starting point for any lender, and it’s the reason service station finance works differently from almost any other kind of retail.

How do lenders read a service station’s numbers?

A lender who sees large deposits in your bank statements will not size a loan from them. They’ll want to break the business into its parts:

• Fuel volume and margin. Litres sold per week and the cents per litre you keep after the wholesale cost.
• Convenience store sales and margin. Drinks, snacks, coffee, food-to-go and grocery lines often earn far more per dollar than fuel.
• Other income. Car wash, gas bottle swaps, parcel lockers, rent from a co-located food outlet.
• Wages and rent. Long trading hours mean wages are heavy, and leased sites carry significant rent.

Lenders then measure repayments against gross profit and net cash flow. A site that sells huge volumes on a wafer-thin margin can borrow less than a smaller site with a strong shop. The margin and markup calculator helps you show both sides clearly before you apply.

Freehold or leasehold matters too. A freehold operator can offer the land and buildings as security, which opens commercial property loans and longer terms. A leasehold operator relies mostly on cash flow lending, equipment finance and a line of credit.

What did 2026’s fuel excise changes do to cash flow?

Fuel excise is part of what you pay your supplier for each load. In 2026 it moved more than it has in years. Starting 1 April 2026, the federal government cut fuel excise in half for a three-month period, then extended a smaller discount through to 2 August. From 3 August 2026, the relief ended and excise rose again, with the usual August CPI indexation applied at the same time.

For a service station, that creates a working capital swing that has nothing to do with how busy you are. When excise goes up, the next tanker load costs noticeably more for the same number of litres. Your tanks hold the same volume, but refilling them takes more cash. Excise is also normally indexed twice a year, in February and August, so smaller versions of the same step happen every six months.

Owners who came through August 2026 smoothly typically had a line of credit or supplier credit sized for the dearer loads. Those who didn’t sometimes had to order smaller, more frequent deliveries, paying more in freight and risking running dry on a busy weekend.

Facing a dearer delivery or a shop restock you can’t fund this week? Tell us what’s needed. One specialist will review it, and enquiring doesn’t touch your credit file.

The card surcharge ban and fuel margins

From 1 October 2026, the Reserve Bank’s decision removed surcharges on eftpos, Mastercard and Visa debit, prepaid and credit cards, while also lowering interchange caps. Few service stations surcharged fuel, but some did on small shop purchases or particular card types.

Fuel is where card costs bite hardest. A percentage-based merchant fee on a full tank can take a real share of the per-litre margin. The lower interchange caps should help, and the RBA expects small merchants to benefit most. Still, check your merchant statements after October and include the actual cost per transaction in any forecast you give a lender. Moving to a cheaper payment provider or least-cost routing on debit cards can make a measurable difference on thin margins.

Supply agreements, tanks and other site risks

Your fuel supply agreement. Most independent sites buy under a fuel re-selling agreement with a wholesaler, which may also include branding, signage and equipment. The Oilcode of Conduct, a mandatory industry code, sets rules for these agreements and requires wholesalers to publish a terminal gate price daily. Lenders will want a copy of your agreement, its remaining term and any exclusivity or termination clauses. A long agreement with a recognised supplier makes your income look steadier.

Underground tanks and contamination. Underground petroleum storage systems carry environmental obligations in each state, including leak monitoring, record-keeping and reporting. Valuers and lenders often ask for testing records and environmental reports before lending against a freehold site, because a contaminated site is worth less and harder to sell.

Changing demand. Tobacco sales, once a large convenience line, have fallen sharply at many sites. Electric vehicles are a slow, long-term shift in fuel volumes. Lenders may ask how your shop and services are growing to offset these trends.

Location and roadworks. A new bypass or extended roadworks can cut passing traffic overnight. Highway and regional sites are particularly exposed.

What do service station owners typically finance?

Need	Finance that tends to fit
Fuel loads during price or excise rises	Working capital loan or line of credit
New dispensers, tank lining, canopy, lighting	Equipment finance
Shop refit, coffee machine, food-to-go kitchen	Unsecured loan or shop fit-out funding
Buying an operating site (leasehold)	Business acquisition loan, sometimes with property behind it
Buying a freehold site	Commercial property loan, plus an environmental report
An ATO debt after a tight quarter	Tax debt loan or an ATO payment plan

What should be in your application?

1. Recent bank statements for the business account the fuel and shop sales go through
2. Weekly fuel volumes and margin reports from your point-of-sale system
3. Shop sales and margin by category
4. Your fuel supply agreement and lease
5. Tank testing records and any environmental reports, especially for freehold sites
6. BAS lodgments and an ATO statement
7. Accountant-prepared accounts and lodged returns if the amount is larger

Example: an independent operator buying a second site

A hypothetical example, not a real business. An independent operator runs a leasehold site on the outskirts of a NSW regional city. The shop now earns more gross profit than fuel. The owner wants to buy a second leasehold site on the highway, priced at $650k for the business, plus about $90k for a shop refit.

The bank likes the first site’s figures but asks for security over the owner’s home for the full amount and a two-month approval process. Instead, the operator puts in cash saved from the first site and funds the rest of the purchase with a second mortgage that sits behind the mortgage already on the family house. The refit goes on equipment finance, secured by the new coffee and food-to-go equipment. A small line of credit covers the bigger fuel loads when excise rises in August. Twelve months later, with two sites of trading history, the owner refinances to the bank on better terms.

Ready to talk about your site?

Funding a service station is about margins, timing and the details of the site. We speak with fuel and convenience operators regularly and understand why turnover doesn’t tell the whole story.

The form asks a handful of questions and most operators finish it inside a minute. Lodging it is not a credit application, so your file is left exactly as it was. What you send isn’t parcelled out to dozens of funders hoping one bites. It lands with one person, who reads about your site and rings you back. Give us honest litres, margins and the job the money has to do; precise inputs are how the first suggestion ends up being the useful one.

Check your service station’s finance options →