Ways to Finance Your Food Truck Business

Are you looking to break into the food truck industry? Whether you’re a newcomer or you are a food truck owner looking to expand your existing restaurant operation, chances are you’ll need a hefty sum of cash to get your new venture up and running. 

If you don’t have a ton of reserves lying around, there are ways to get the capital you need as a business owner. In this guide, you’ll discover food truck loan options and how to qualify and apply for funding. 

Find Financing For Your Food Truck Business

We make food truck financing process simple and easy. Fill out an application in minutes and get funded in as little as 24 hours.

Loan Options for Financing Your Food Truck

Ready to move forward with securing financing for your food trailer? Before calling your local bank or credit union, also consider online lenders to explore your small business loan options. Lendio features over 75 lenders that can provide the capital needed to establish a solid foundation for a business that will be successful for years to come. 

Startup Loans

startup loan is a way to get the funds you need to launch with confidence. You won’t have to convince relatives or friends to believe in your vision and fork over their hard-earned cash. Plus, you can skip the pitches to investors, which could result in giving up a share of your equity in the business. 

Use Lendio to explore startup loans. You could qualify for between $500 and $750,000 and receive funds in just two to four weeks. You’ll need a credit score of 680 or higher and should be in business for at least six months before applying. 

Equipment Financing

The equipment you’ll need for your food truck is one of the more costly expenditures. Consider equipment financing to cover the costs in the short term. Most lenders have competitive interest rates and rapid funding times. But be mindful that these loans are secured by the equipment you purchase. So, defaulting on the payments means the lender could seize the equipment and sell it to recoup their losses. 

Compare equipment financing options with Lendio, and if approved, get funds in as little as 24 hours. You’ll need a credit score of 650 or higher, $50,000 in annual revenue and at least 12 months of business experience. (If your credit score isn’t up to par, you could be eligible if you can demonstrate steady revenues and cash flow for the past three to six months). Qualified applicants receive loans between $5,000 and $5,000,000. 

Small Business Administration (SBA) Microloans

If you need $50,000 or less to fund your food truck business, a Small Business Administration (SBA) Microloan may be ideal. SBA loans are offered through lenders in the field and not directly from the SBA. Before funding the loan, though, the SBA will likely require a personal guarantee and collateral. You can use the loan proceeds to purchase equipment, inventory or supplies. Working capital costs are also allowable expenses under these loan products. 

Lendio makes it easy to compare SBA Microloan options. The lenders in their network offer loans up to $5,000,000, typically funded between one and two months after approval. 

Find Financing For Your Food Truck Business

We make food truck financing process simple and easy. Fill out an application in minutes and get funded in as little as 24 hours.

Business Lines of Credit

Maybe you have enough cash on hand to get started but could use a safety net soon? A business line of credit is worthwhile as it gives you a pool of money to draw against as needed. The key benefit is you’ll only pay interest on the funds you use. 

You can make as many withdrawals and repayments as you’d like during the draw period and only pay interest on the amount you borrow. When the draw period ends, you can request another line of credit if needed. In the meantime, you’ll begin making payments (principal and interest) on the remaining balance. 

The amount you qualify for depends on your credit score and annual revenues. Lendio’s partners require a minimum credit score of 560, six months in business and at least $50,000 in yearly revenue. Upon approval, you’ll get a business line of credit between $1,000 and $500,000. 

Who Qualifies for Food Truck Financing and Leasing?

The qualifications will depend on the type of financing or leasing you’re considering. As a rule of thumb, you should meet the following criteria: 

  • Have a personal credit score between 550 and 640
  • Be in business for at least six months 
  • Earn monthly revenues of $10,000 or more
  • Prepare to make a down payment of 5 to 20 percent (equipment financing only)
  • Present a solid business plan

How to Use Financing to Grow Your Food Truck Business

There are several ways you can use financing to expand operations. You can cover startup costs, including inventory, equipment, marketing, staff and permits. If you’ve been in business for a bit, upgrade equipment, hire more staff, purchase a second truck, make costly repairs, expand your menu or ramp up marketing to make your food truck more visible to the masses. 

How Do You Apply for Food Truck Financing? 

Lendio takes the guesswork out of finding the ideal financial solution for your food truck or restaurant business. With over 10 funding options from more than 75 lenders, you can identify and explore options that may be available to you all in one place.

Here’s how the platform works: 

  • Step 1: Complete the online application to check your eligibility. It only takes 15 minutes, and there’s no impact on your credit score. 
  • Step 2: Review your options from the lenders in the Lendio network. 
  • Step 3: Select your top choice and upload any necessary documentation to get approved. 
  • Step 4: Receive your funds in just 24 hours (depending on the loan product). 

To date, Lendio has helped more than 300,0000 small businesses secure over $12 billion in funding. Plus, it’s accredited by the Better Business Bureau with an A+ rating and boasts thousands of exceptional online reviews. So, you can have peace of mind knowing the Lendio team has your best interest at heart. 

Launch your food truck business with confidence or expand operations without stretching your finances too thin. Check your eligibility for a business loan from a lender in the Lendio network today.

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