How to get a Loan for a Food Truck Business?

Get a loan for a food truck Business; Food trucks allow professional chefs and anyone interested in food service to start a business quickly. With the growing popularity of food trucks, these mobile businesses are great for customers and business owners. As a food truck owner, you can be your boss, have a flexible work schedule, test new products, and build a loyal following.

Get a loan for a food truck:

You save on large capital expenditures and heavy overhead without a brick-and-mortar location. However, it would assist if you still had financing to fund your food truck business.

That said, food truck financing requires less capital than traditional restaurant financing. It still comes with its fair share of costs. 

Business credit cards

Therefore, whether you turn to traditional small business loans or other products, you will need access to money at one point or another to finance your food truck. So, if you are examining your best food truck financing, this guide is here to help.

Here, we’ll break down your top options for food truck loans. And share some examples of how real food truck owners have financed their businesses. Finally, we’ll explore how to choose the right food truck financing for your business.

Top Food Truck Loan Options

  • Equipment Financing: Best for starting your food truck business and purchasing the necessary equipment
  • Business Lines of Credit: Convenience food truck is best for financing, especially working capital
  • SBA Microloans: Best for smaller funding amounts and the most affordable financing
  • Business credit cards: Best for everyday food truck purchases and to cover other debts
  • Crowdfunding Campaigns: Best for serving a variety of financing needs, great for creative food truck owners with ties to the local community

Best food truck financing options

You’re right if you think you’ve seen more food trucks lately—the U.S. In the Chamber of Commerce Foundation’s “Food Truck Nation” study, researchers found that mobile food enterprises generated a staggering $2.7 billion in revenue in 2017. It is up from just over $650 million in 2014, more than 400%. 

How is this growth possible? The short answer is food truck financing. Access to food truck loans to make these businesses possible is necessary for the food truck industry to grow at this exponential rate.

Therefore, if you are looking for food truck financing, you may wonder what products can offer your business and which options are best for your needs.

While you may find a variety of solutions that work for your business, you can start your search with these five top food truck financing options:

Equipment Financing

First, one of your best food truck financing options, especially if you’re starting and looking to pay for a truck, may be equipment financing. Equipment financing can also be a top food truck loan solution if you want to make large equipment purchases like stoves or ovens inside your truck.

As the name suggests, equipment financing is a specific method that allows you to purchase business equipment that is collateral for the loan. Equipment financing can use to finance the needs of ovens, semi-trucks, automobiles, and other large equipment.

Generally, equipment financing loans are lump sum, with some companies offering to cover up to 100% of the value of the equipment. The terms are usually for the expected life of the equipment, and interest rates are between 8% and 30%.

Overall, since equipment financing is, by definition, secured financing, you can access lower interest rates. Additionally, this type of food truck financing often requires little paperwork and can be funded as fast as two days.

Plus, equipment financing lenders usually pay more attention to the equipment you buy (and its value), so they’re additionally likely to work with you even if your qualifications aren’t ideal—so, it’s pretty good—best food truck financing options for bad credit.

With Currency Capital, for example, you can get up to $2 million in equipment financing with interest rates as low as 6%. Plus, if you’re looking for a food truck loan under $150,000, you can get funding in just 24 hours.

Business lines of credit

Consider a business line your top solution if you have various food truck financing needs.

A business line of credit gives you entry to a pool of reserves from which you can draw capital. When you reimburse your business line of credit, you owe only the amount you spend—meaning you only pay interest on what you spend.

SBA Microloans

Another solution you should consider is food truck loans. SBA Microloans—These loans are a great option for small needs ($50,000 or less) and have some of the lower interest rates on demand.

Through this SBA loan program, the SBA provides funding to community-based nonprofit organizations that lend the proceeds to local small businesses. SBA microloans are the easiest to qualify for of all the SBA loans and are worth it for new or startup businesses.

Business credit cards

For small needs and everyday purchases, you can explore a business credit card as a top solution for financing your food truck. During more than the low credit limits on business, credit cards may need to finance your food truck fully. These products can be useful for other needs, especially for purchasing a truck or large equipment.

With a business credit card, like a personal credit card, you can pay for everyday food truck expenses for inventory, small equipment purchases, or software subscriptions. 

A business credit card is useful when starting your food truck because you need an average personal credit score to qualify. Plus, you can apply for almost any business credit card online with a simple and fast application.

Crowdfunding campaigns

Finally, consider starting a Crowdfunding campaign as one of the best options for food truck financing. Because the mobile nature of food trucks makes them almost defined community fixtures, Crowdfunding is a very useful method for food trucks to access funding, especially from their local community.

You can start fundraising campaigns through websites like Kickstarter and IndieGoGo and ask customers, family, friends, and strangers for donations to finance your food truck.

How to Choose the Best Food Truck Loan for Your Business

You’ll want to consider a few factors that will inform your search process and how you reach your final decision.

First, you require to think about your business needs, asking questions like:

  • How much funding do I need?
  • What am I going to utilize this money for?
  • How fast do I need this capital?
  • Which financing products work best for these amounts, timing, and interests?
  • Next, you should consider your qualifications:
  • What financing products can I qualify for?
  • What does my credit score look like?
  • What business financials or plans can I present to a potential lender?

Finally, consider what you can afford. You may see that there is a business funding solution that meets your needs and qualifications—but if you can’t repay those funds efficiently, you may have to wait until you apply.

Through this process, you can narrow your options to find the right food truck loan for your business.


Now that you’ve made it through our food truck financing guide, you should better understand your top options. And know how to find the right food truck loan for your business.


How Much is a Food Truck Vehicle License in India?

Here’s an overview of what you need and how much it costs: Food Truck License: ₹ 5,000 (Approx.) Sanitation Certificate: ₹ 2,000 (Approx.) Health Certificate: ₹ 3,000 (Approx.)

Are food trucks profitable in India?

Yes, food trucks are a profitable business, but it requires a significant upfront investment and food that people enjoy.

How much does it charge to finance a food truck?

Buying and customizing a food truck can cost anywhere from $20,000 to $40,000.
It’s important to remember that your food truck financing costs will also include interest. They’ll add up even more if you finance the entire truck simultaneously. Of course, your costs will also vary based on the food truck financing method you choose.

How do you finance a food truck?

You can finance a food truck in several ways—some of the most popular methods include:
Equipment financing, Business lines of credit, SBA Microloans, Business credit cards, and Crowdfunding campaigns

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