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...  The Ins And Outs Of Getting Food Truck Financing

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...  Where Does Your Food Truck Insurance Dollar Go?

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...  Co-Founder Of Prestige Food Trucks Jeremy Adams Talks About Growing And Scaling A Million Dollar Business With 'Create Your Own Life'

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

3 Tips Aspiring Food Truck Business Owners Have To Follow 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...
#FoodTruckFan: How to Sell the Cost of Better Ingredients On Wednesday in the "How to Start a Food Truck" series, we wrote about the importance of quality ingredients. As a customer, I wholeheartedly second that. I’m sure that as a business owner, you con...
Flashback Friday: Handling Customer Disputes At Your Mobile Kitchen While the actual food you serve at your mobile kitchen is rather important -- it's your product, after all, and likely the thing you are most passionate about -- customers are right up there when it c...
2 Things New Food Truck Owners Should Add Into The Mix Right Away 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 01: Train Your Food Truck Employees Welcome to the first lesson of our second food truck business planning series: "How to Run a Food Truck." We’re so excited to have you here! Whether you’ve just hit the streets after following alon...
Food Truck Owners Can Finish The Last Few Months Of 2017 Strong With These Tips September is almost here, FoodTruckrs, which means summer 2017 is almost in the books, fall is right around the corner and there are basically only four months left in the year. With that, we pose ...
5 FoodTruckr Articles That Can Help Mobile Kitchen Owners Get A Jumpstart On The Week If you're looking to get a jumpstart on the upcoming week, then you came to the right place. After all, we are about to unleash five articles (previews and links included below) that are jam-packed...
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...
FS034: How to Make a Huge Impact with a Small Footprint – with Phil of Metrofiets Does the thought of buying and maintaining a traditional food truck seem daunting, expensive, or simply not your style? You might be interested in this radical food trucking alternative: cargo bikes. ...
Florida Food Trucks That Foodies Need To Try Immediately The Florida food truck scene is awesome, which is why we will be visiting said Florida food truck scene today in the form of previewing three trucks that you need to visit -- and eat at -- ASAP. You k...
What Financing Can Do For Your Food Truck Business 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...
15 Motivational Quotes To Help Food Truck Owners End 2017 On A Strong Note With 2017 winding down, many food truck owners -- and people in general -- are already looking forward to 2018. It's only natural. After all, a new year (in this case, 2018) tends to hold so much h...
Flashback Friday: Finding Prime Parking In The Food Truck Industry On Feb. 12, 2014, an article was published on FoodTruckr with the title of How to Start a Food Truck 06: Find Prime Parking. In Flashback Friday fashion, we will be revisiting that article today. J...
How To Make Your Food Truck Business More Profitable We all want to make more money, right? Well, you likely didn't enter the food truck industry to be an instant success. No, you entered this industry to follow your dreams, to live out your true passio...
Must-Read FoodTruckr Articles From 2018 While FoodTruckr has featured plenty of tips, tricks and motivational pieces in 2018, we encourage food truck owners to check out the collection of articles below. Must-Read FoodTruckr Articles From ...

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