How To Increase Your Odds Of Getting Food Truck Financing

Weekend

Editor’s Note: Today we’re excited to present a guest post from JSL Financial. JSL Financial specializes in providing hassle-free financing for small and medium sized businesses. You can find out more about JSL Financial by checking out their website.

If you are trying to break into the food truck industry but don’t have the cash to buy the actual food truck, then you are doomed, right? That isn’t necessarily true. After all, you could get financing to help purchase your mobile kitchen.

If you are wondering how to increase your odds of getting food truck financing, then we have you covered. And remember, all is not lost if you don’t have perfect credit. So if you think there is no way you can get food truck financing, you better think again — because where there’s a will, there’s a way.

Sign up to receive the FoodTruckr Newsletter and we’ll throw in our free guide: 6 Free Social Media Tools to Get People Talking About Your Food Truck.

How To Increase Your Odds Of Getting Food Truck Financing

  • Have Good Credit
  • Have Some Collateral
  • Have An All-Star Cosigner
  • Have Cash For A Downpayment
  • Have A Great Business Plan

Have Good Credit

If you really want to increase your odds of getting food truck financing, then work on that credit score. A credit score will help prove to banks (or whoever you are trying to get a loan from) that you are reliable. After all, you don’t get a perfect credit score by missing credit card payment after credit card payment.

With that said, a good credit score by itself won’t guarantee you getting a loan for your food truck, and that is where collateral comes into play.

You May Also Like...  Do Smart Spenders Save In The End When Purchasing A Food Truck?

Looking to start your own food truck? Prestige Food Trucks can do wonders for you in that department.

Have Some Collateral

If you have a good credit score and collateral (such as your house or a car), then you are in really good shape when it comes to getting food truck financing. However, you need to make sure you are going to make back the money so you can make payments on time.Financing

If not, then it’s called collateral for a reason, and you could lose your house or car if you can’t make payments on your loan.

That is why a solid business plan is so important for you and the bank. We will break that down in greater detail later on.

Have An All-Star Cosigner

If you have decent credit, average credit, bad credit or something along those lines, then you more than likely need a cosigner. An all-star cosigner — you know, one with amazing credit — is a must if you have bad credit.

While this all-star cosigner will help you get some financing, you need to break down everything for said all-star cosigner. The last thing you or this cosigner wants is you not having the funds to make your payments, and then the bank going after your cosigner as a result. That is why you have to make sure you, once again, have a good business plan. If making back the money you were loaned cannot be broken down on paper (in other words, if it is not possible to make back the money and make payments on your loan), then you should not be getting financing, because your cosigner will likely get stuck with the bill.

You May Also Like...  3 Ways Food Truck Owners Can Counter Failure

Be honest with yourself and your cosigner.

Have Cash For A Downpayment

Even if you have good credit and collateral, you still might need cash for a downpayment. Likewise, even if you have an amazing cosigner, you still might need cash for a downpayment.

A downpayment could be 5 percent of the total loan, 10 percent of the total loan, 15 percent of the total loan, you name it. It really comes down to your situation. If you have amazing credit and worthy collateral, then your downpayment will likely be lower than it would be for a person who has decent credit and not much in the collateral department.

Nonetheless, if you really want to join the food truck industry, you will make it work. Not to mention, you could still get financing no matter what your situation is.

RELATED: Tips For Food Truck Owners Who Are Struggling To Retain Customers. If you are struggling to either retain customers or attract customers, then you have a major problem. Fear not, as this article can help you retain customers in no time.

Have A Great Business Plan

FinancingNot only is a great business plan a must for you, but it really could come in handy when you try to get some financing.

Why it’s important for you: A good business plan will map out everything for your food truck business. It will map out how much money you need to make to keep operations running, how much inventory you need, at what point you can hire on an extra employee and the list goes on and on. Without a business plan — well, a good business plan, that is — you will be lost, and your business will likely fail.

You May Also Like...  How To Crush A Catering Gig For Your Food Truck Business

Why it’s important for the bank (or whoever is giving you money): It shows the bank that your business is official, and that you can make back the money that you owe them.

If you have all of the things listed above (side note: you probably don’t need a cosigner if you have amazing credit), then you are well on your way when it comes to getting food truck financing. Nonetheless, if your dream is to own a kitchen truck but you don’t have enough money to make that dream come true, don’t give up until you venture down different routes, such as the financing path.

RELATED: How To Find The Perfect Location For Your Food Truck. Finding the perfect location for your food truck could lead to a massive amount of success for you and your business. If you are in the market for the perfect location, then let this article be your guide.

Looking for financing to start or grow an existing food truck? JSL Financial has you covered.

To dig your teeth into what FoodTruckr has to offer, make sure to like us on Facebook and follow us on Twitter, and also make sure to check out more content that we bring to the table.

Recently on FoodTruckr

Don’t Make These Mistakes If You Are A Food Truck Business Owner People make mistakes all the time. The key is to limit the mistakes, and to also learn from them when you do make them. Of course, that's easier said than done, especially if you don't even know yo...
FS024: Food Trucks and Kickstarter with Malcolm Bedell from ‘Wich Please If you're thinking about funding your food truck with a Kickstarter, listen up. I've got Malcolm Bedell with me on this episode of the Foodtruckr School Podcast, talking about his up-and-coming fo...
Why Food Truck Owners Should Embrace The Pumpkin Spice Flavor We know what you're thinking... It's not even officially fall yet, so why should we embrace the pumpkin spice flavor right now? You might also be thinking that the pumpkin spice flavor doesn't rela...
FS027: How to Keep a Food Truck in Business with Yvonne from Brown Shuga Soul Food Warning: Your mouth might water just hearing about this food truck. Brown Shuga Soul Food has been serving up pulled pork, ribs, mac-n-cheese, and more for nearly four years, and Chef Yvonne Ander...
How to Run a Food Truck 09: Prepare for the Off-Season Today marks the start of Unit 3 in the “How to Run a Food Truck” series, and we think you all are really going to love these next few lessons. For the next month on FoodTruckr, we’ll be talking about ...
Top 5 FoodTruckr Articles For 2017 So Far Whether you are in the process of shattering your food truck goals for 2017 or are slightly off track, you can never have too much motivation, inspiration and advice. With that in mind, we are abou...
Throwback Thursday: A Look Back At FoodTruckr Articles That Are Perfect For Fall For this week's edition of Throwback Thursday, we decided to incorporate the season that is just around the corner -- fall! Therefore, we are going back to some awesome articles that have been rele...
Delicious Foods Everyone Should Be Enjoying This Fall Fall is coming. This means a few things. For one, the leaves are going to start changing colors (and falling), the temperatures are going to drop, the nights will become longer, the days shorter, foot...
If You Really Want To Succeed In The Food Truck Industry, Then You Have To Figure Out What Is Holdin... Editor’s Note: Today we’re excited to present a post from Jeremy Adams. Jeremy is the President/CEO of Prestige Food Trucks, which is the world's leading custom food truck manufacturer. In his current...
How to Run a Food Truck 22A: Market Like an Advanced FoodTruckr FoodTruckrs, can you believe it? Today’s lesson marks the end of Unit 5 of “How to Run a Food Truck"—and with just one more unit to go, that means we’re almost finished with the entire series! You guy...
Six Seasonal Strategies to Delight Fans in December The holiday season is upon us, and your loyal year-round fans are getting ready to spend the bulk of their discretionary dollars.  However, as people cut their budgets in order to save more money for ...
The 10 Commandments of Customer Relationships The food truck gods are fickle beings, and your truck may be plagued by customer droughts if you fail to please them. But if you can figure out the secret to the sacrament of success, you’ll be reward...
Flashback Friday: A Look Back At The Benefits Of Owning A Food Truck Over A Sit-Down Restaurant Editor’s Note: Today we’re excited to present a post from Jeremy Adams. Jeremy is the President/CEO of Prestige Food Trucks, which is the world's leading custom food truck manufacturer. In his current...
November Is The Perfect Month For Food Trucks To Ramp Up Their Catering Businesses Believe it or not, tomorrow is the first day of November, which means there are only two months left in the year for food truck owners to meet all of their goals. Are you on track when it comes to mee...
Throwback Thursday: All-Star Practices During The Slow Season In The Food Truck Industry Editor’s Note: Today we’re excited to present a post from Jeremy Adams. Jeremy is the President/CEO of Prestige Food Trucks, which is the world's leading custom food truck manufacturer. In his current...

About the Author

FoodTruckr

FoodTruckr is the #1 online destination for current and aspiring food truck owners looking to succeed in the mobile food industry. Self described “food truck devotees,” the FoodTruckr team enjoys reading about successful entrepreneurs, salivating over photos of burritos on Twitter, and long walks through food truck parks. Chat with FoodTruckr on Facebook or check out the FoodTruckr School podcast for more awesome tips to level up your business.

Love it? Share it: Share on Facebook Share on Twitter