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 Best FoodTruckr Advice For Mobile Kitchen Owners From Last Week: Aug. 28-Sept. 3

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...  Flashback Friday: Be Consistent At Your Food Truck

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 Start A Mobile Street Food Business On A Small Budget

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

FS001- Tips, Strategies and More with Mike Swaleh from Tikka Tikka Taco and The Great Food Truck Ra... We at FoodTruckr are extremely happy to welcome you to the very first episode of FoodTruckr School! FoodTruckr School is a podcast dedicated to helping you take your food truck business to the ...
Startup Tips For New Food Truck Owners We all need tips from time to time. If you are a first-time entrepreneur, business owner or, in this case, new to the food truck industry, then let these startup tips be your guide. The problem wit...
Take Your Food Truck Business To New Heights In 2018 With These 5 Articles If you're ready to take your food truck business to new heights in 2018, then please proceed. One of the best things people can do to gain more knowledge -- and success -- is reading. Just look at ...
Food Truck Owners Have To Be Willing To Adapt Succeeding as a food truck owner isn't easy and there are many reasons why an owner might not see as much success as he or she was hoping for. One of those reasons could be this: Owners aren't will...
FS016- An Education in Food Truck Law with Patrice Perkins of Creative Genius Law In this episode of FoodTruckr school, we're happy to welcome Patrice Perkins, a Chicago-based attorney who blogs at Creative Genius Society and also Creative Genius Law. Patrice gives us the lo...
3 FoodTruckr Articles That Will Help Owners Out With Customer Service Without customers, you wouldn't be in business. As a result, you and your food truck team should cherish your customers, and do everything possible to make your business' customer service game as g...
3 Reasons Why Your Food Truck Business Has To Have A Facebook Account While Facebook might attract younger folks, it is for everyone. Not only because it is easy to use, but because it is absolutely essential if you own a business. If you own a food truck and have go...
Summer Listening: Eight Great Podcasts for Food Truck Owners Do you remember getting summer reading assignments when you were a kid? Even though those were pretty terrible at the time, one of our favorite things to do now in the summer is to kick back with a...
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...
Showing Love For The Food Truck Industry With the busy season right around the corner (for some food trucks, the busy months might have already started), it would not be a surprise to see more and more food trucks hitting the streets on a da...
3 Key Ingredients Food Truck Entrepreneurs Should Focus On This Summer 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 Start a Food Truck 21: Create a Logo and Truck Design This month on “How to Start a Food Truck, our content focuses on helping you make the best first impression possible on your customers. We kicked off Unit 6 last week with an important lesson on estab...
Why It’s Okay If Entrepreneurs Fail In The Food Truck Industry The word "fail" gets a bad rap. After all, we don't associate some of the most successful people in the world with failure, we associate them with success. However, every successful person comes fa...
Invaluable Advice When It Comes To Your Food Truck Employees How's your dream team looking, FoodTruckrs? If you want to climb to the top of success mountain, then you need to create your dream team. Yes, that includes your employees (in fact, it especially i...
10 FoodTruckr Articles That Every Food Truck Owner Needs To Read We have published a lot of information over the years, from articles relating to starting up a food truck business to motivational pieces to ... well, you name it. However, we wanted to take this t...

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