How To Increase Your Odds Of Getting Food Truck Financing

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 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...  Customer Service Tips For Food Truck Owners

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...  The Many Faces of Food Trucks: How Renting a Truck Benefits Your Business

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...  7-Step Plan For How To Start A Mobile 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

Business Bites: Navigating the Latest Facebook Page Upgrade, Food Hackathons, and Skipping the DMV Welcome back to Business Bites, a bi-weekly column with articles and tidbits we've come across in the last two weeks. Facebook Updates Pages: Here's What Changed Facebook loves to make changes qui...
The 12 Days of FoodTruckr: 5 Golden Podcasts On the fifth day of Christmas, FoodTruckr’s giving you… Five Golden Podcasts! That’s right, FoodTruckrs—today is one of our favorite days of The 12 Days of FoodTruckr, because we get the chance to s...
#FoodTruckFan: Guilty Pleasures What's your guilty pleasure? Mine's a grilled cheese sandwich: bread grilled until it's dark and crunchy, cheese that's impossibly melty, a bit of melted butter on my fingers. As a child, the grill...
How to Start a Food Truck 05: Look into Local Laws Before we get started on today’s lesson, let’s take a minute to look back at everything you’ve accomplished so far—as well as look forward at all the crazy awesome content we have coming up for you in...
Top Tips From The General Manager Of A Successful Food Truck Editor’s Note: Today we’re excited to present a post from Tori Galatro. Tori is a blogger, copywriter, and SEO outreach manager based in Austin, Texas. Her favorite things to write about are film, foo...
5 FoodTruckr Articles That Will Do You Wonders In The Financing Department If you are trying to enter the food truck industry but can't come up with the necessary funds to make this dream come true, then we have quite the treat for you today. Likewise, if you are struggling ...
FoodTruckr Heroes: The World’s Largest Food Truck Rally What’s better than a food truck festival that brings a ton of tasty trucks together in one place?  Admittedly, that’s a bit of a trick question!  There’s nothing better—except for a food truck fest...
FS017- Food Truck Propane Safety with PERC On July 1st, 2014, a horrific and tragic event happened in Feltonville, Philadelphia when a food truck exploded, injuring 13 people, including 2 critical injuries. Sadly, the two people who wer...
FoodTruckr Heroes: The Crème Brûlée Cart This week’s FoodTruckr Hero is truly doing some honorable work: fostering a sense of community through good old-fashioned dessert. The Crème Brûlée Cart, started by Curtis Kimball in 2009, has spent t...
5 Reasons We Can’t Wait for 2015 2014 was our first full year here in business at FoodTruckr, and we have to say—what an incredible year it’s been! From the debut of our “How to Start a Food Truck” series to having an episode of the ...
How to Run a Food Truck 19: Promote Your Truck Through Yelp After you learned how to be a better business owner in our last unit with lessons on topics like tracking your food truck’s metrics, preparing for health inspections, and being consistent, we bet you’...
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 Run an Eco-Friendly Food Truck Editor's Note: Hey FoodTruckrs! Whether you're just learning how to start a food truck or you're looking for more ways to improve your food truck business, today's lesson is an important one for every...
FoodTrucker Heroes: The Cookie Monstah Guys, can we talk about how amazing The Cookie Monstah is today? These FoodTruckrs have totally captured our hearts (and our stomachs, and our wallets, and our dreams, and our…). Here's how: 1. The C...
The 12 Days of FoodTruckr: 7 New Things to Sell On the seventh day of Christmas, FoodTruckr’s giving you… 7 New Things to Sell! We’re hoping today’s new post will bring all of you who are getting ready to start your own food trucks a little inspi...

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