The food truck business has been growing more and more each year, and it is expected to keep increasing given the success it has witnessed across the country. Some of the advantages the food truck industry offers include minimized risks, simpler business plan, and fewer overhead expenses.

When looking for financing for a food truck it’s imperative to be aware of your options and to make sure you’re setting your business up for future financial success.  Making the wrong investment decision can cost you a lot of money in the long run, whereas getting the right financing for your food truck can lead to increased profits and stable cash flow.

food truck

Let’s break down some of the sources for food truck financing:


  1.    Bank loans for Food Trucks

Bank loans remain one of the most widely used financing options for food trucks. However, banks can oftentimes to wary lending money to new businesses due to the uncertainty that new businesses bring. Banks understand that investing in a new food truck business can be risky, and their will have a number of underwriting guidelines that will need to be met to qualifying for financing with them.  Be prepared to meet their credit score and down payment requirements as well as to present a sufficient business plan or proposal on how the funds will be used to optimize your business. If your credit is damaged you’ll want to explore other financing option as well as work towards repairing the credit for the future.


  1.    Micro-loans for Food Trucks

A micro-loan is an excellent option for financing your food truck when you do not need a larger amount to invest in your business. Small food truck businesses can thrive using these loans if the money is managed wisely. The SBA (Small Business Administration) usually offers short-term loans in small amounts with reasonable interest rates.

SBA loans usually average around $15000 (the limit is often at $50,000) which can be used by small businesses not just to cover the cost of a food truck, but other business expenses as well.  

food truck financing

  1.    Crowd-funding your Food Truck

Crowdfunding has increasingly become a popular way to finance a business start-up such as a food truck. Crowd-funding essentially means accepting contributions of varying sizes from friends, family, well-wishers, and strangers alike, to accumulate an amount that can finance your business plan. It helps to be internet savvy, have a lot of publicity skills, and execute a comprehensive outreach plan in your community, social media, and other circles.

Food trucks can provide a form of community service too if you package it correctly. This means that it is no longer just a means of earning profits, but also a source of making certain provisions available in your area or community. If you can tap into this understanding of the food truck industry, and present it in a manner that appeals to those around you, this can be a substantial help in getting the financing you need.


  1.    Business Line-of-credit

In recent years, opting for a business line of credit loans has quickly become a popular choice for service providers and enterprises. A credit line offers an array of benefits including flexibility in usage and repayment, access to cash-on-demand, and avoids a large monthly payment that often comes from taking a large term loan out all at once.

A credit line enables you to purchase new supplies, equipment, and make upgrades as the need arises.


  1.    Business Credit Cards for Food Trucks

Business credit cards can also be used to fund a lot of the initial expenses that come with setting up a food truck business. For new businesses the amount initially offered on the credit card may not be large, but for business circumstances that don’t require a lot of money a credit card can be ideal.  The downside with credit cards is that they typically carry higher interest rates so it’s important to have a plan for paying them off as quickly as is practical to avoid excessive interest expenses.


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