The Ins And Outs Of Getting Food Truck Financing

Financing

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.

Are you trying to break into the food truck industry but don’t have the funds to turn this dream into reality? If so, that is okay … as long as you are willing to get a bit creative.

You see, anyone can break into the mobile kitchen industry — if they really want to. No, that does not mean anyone can survive and thrive in this industry, because making it in this industry takes more than having enough cash to buy a food truck, equipment and all of the inventory.

If you want a spoonful of success in this industry, you have to come up with an epic business plan — and you have to be business savvy on top of that — and you also have to be a great chef. Those things are invaluable. However, let’s get back to the money/financing issue.

Always remember, where there’s a will, there’s a way. If you want to become a food truck owner bad enough, and you have a plan on top of that, then you can. Think of the money you need initially as a minor and short-term obstacle.

Want to learn how to build a subscriber list for your food truck business? One of our managing partners here at FoodTruckr has put together an AMAZING FREE GUIDE that will teach you everything you need to know about getting started with Messenger Marketing! Click here to get your free guide.

With that said, let’s break down how a prospective food truck owner can get financing, which could lead to startup capital and/or you actually buying a food truck and all of the equipment that goes along with it. In other words, let’s break down the ins and outs of getting food truck financing.

You May Also Like...  How to Run a Food Truck 15: Track Your Food Truck Metrics

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.

The Ins And Outs Of Getting Food Truck Financing

If You Have Mediocre To Bad Credit

If you have mediocre credit, you can still finance a food truck. Heck, if you have bad credit, you can still make that dream come true. Of course, having good credit is ideal, but all is not lost just yet.

If you have mediocre or bad credit, then you are going to need a couple of things. First and foremost, you are going to need a cosigner who has good credit — that’s a must. Next up, you might need two more things: (1) Cash for a downpayment. (2) Collateral, such as a car or house.

If you do have a worthy cosigner, cash for a downpayment AND collateral, then you are well on your way when it comes to getting some financing, which means your dream of owning and operating a mobile kitchen could be just around the corner.

Financing

If You Have Good Credit

If you have good credit, then you aren’t in the clear just yet, but your chances of not only getting approved, but receiving a good rate, go up. So, what do you do if you have good credit and you are trying to finance a food truck?

You still might need two things: (1) Cash for a downpayment. (2) Collateral.

With that said, your downpayment might not have to be as great, and that is especially the case if you can use your home as collateral. Nonetheless, if you have good credit, then the uphill battle won’t necessarily be as steep or as tough — getting a dream food truck is a real possibility.

You May Also Like...  The Soul Food Stop Is 'A Food Truck On Steroids'

Looking to build a new custom food truck? Check out this link for more details!

No Matter What, Quality Always Matters

Here’s the final in and out, if you will, to getting food truck financing. The quality of the food truck you are trying to finance has to be good. In other words, you can’t expect to get a piece of junk financed. Lenders do not want to dish out money on a vehicle (in this case, a mobile kitchen) that isn’t reliable. That is the same case when trying to finance a car (high mileage can lead to you getting declined, and it might not Financingnecessarily be your fault).

Look for a food truck that is reliable. Not only will that increase your odds of getting financed, but it could also increase your chances of your truck (or the equipment) not breaking down, which could cost you a ton of money in the long run if breakdown problems do arise.

Bonus Tip: A business plan — scratch that, an all-star business plan that maps out everything — could increase your odds of getting financed. You have to show these lenders you are good for the money. You have to show them numbers and a plan. In this case, you don’t have numbers from a real business yet, so you have to show them your plan.

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

FS011- A Successful Start (and a Cold Winter!) With Tony from Rig-A-Tony’s In this episode of FoodTruckr School, we're very happy to welcome Tony Fumarolo, owner of Rig-a-Tony's, a relatively new Italian food truck that serves the community of Fort Wayne, Indiana. As ...
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...
5 Ways To Potentially Reduce Your Food Truck Insurance Costs Operating a food truck can sometimes mean operating a thin margin line where every dollar counts. Many food truck owners don't have much time or patience to deal with insurance. You're busy trying ...
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...
How To Find The Perfect Location For Your Food Truck One of the most important parts when it comes to starting up a food truck business is figuring out where you are going to park your food truck. For some people, this might be an easy decision. For oth...
Everything FoodTruckr Has Ever Published Relating To Goals 'Tis the season for making goals. After all, December is around the corner and New Year's Eve will be here shortly after that. During this time of the year, people naturally reflect on the year the...
How to Run a Food Truck 17: Focus on Your Work/Life Balance For the past few weeks here on FoodTruckr, the “How to Run a Food Truck” series has focused on helping you become a better business owner. So far, we’ve been looking at topics that relate directly to ...
Business Bites: Start-Up Food, Employee Culture, Video Tips, & Coupon Apps A quick note before I jump into this week's articles and links. We recently learned that some of our contact form messages were not making it into our email inboxes. If you emailed us and never receiv...
5 Branding Tips For New Food Trucks Editor’s Note: Today we’re excited to present a guest post from Adrian Cordiner. Adrian is a writer for nisbets.com.au. He is passionate about food, business, marketing, and technology, and never gets...
FoodTruckr Heroes: Cultured Caveman Some food trucks get our attention by offering the most scrumptious, creative new recipes we’ve ever heard of.  Others stand out by offering the best possible versions of classic dishes that we all kn...
3 Things A Food Truck Entrepreneur Should Be Doing Now In Hopes Of Conquering Spring 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...
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...
Five Things We’re Grateful For This Thanksgiving Thanksgiving is finally here! As you might imagine, this is a pretty big holiday for the FoodTruckr team. Obviously, we all love delicious food—but most of all, we love having the chance to express ou...
FoodTruckr’s Annual Food Truck Industry Survey At FoodTruckr, our passion and purpose is to support your food truck business—whether you’re just getting started or you’ve been in operation for a decade. We do that by providing you with insights an...
Monday Motivation: Inspiring Quotes For Food Truck Owners No matter what industry a person is trying to conquer, a little motivation can go a long way. As a result of it being Monday, we decided to do a #MondayMotivation piece that revolves around inspiri...

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