ADVERTISER DISCLOSURE

Best Food Truck Financing Options & Loans For Good & Bad Credit

Receive personalized loan offers through PrimeRates’ quick and simple pre-application online process.

Food Truck Financing Options & Loans

So you want to buy a food truck. Maybe you were inspired by an episode of Bob’s Burgers and wanted to try your hand at the industry, or maybe you had something delicious at your local Food Truck Friday event and now you want to be a part of that community. No matter what your reason is for diving into the food truck industry, one thing is certain: Starting up a food truck takes cash -- cash that you may not have immediately on hand.

What is a food truck loan?

A food truck loan functions similarly to a business loan. This can come in the form of a business loan from a traditional or online lender, the Small Business Administration (SBA), a line of credit or even a crowdfunding investor. Even if you’re a brand new business owner, the wide variety of financial products available to borrowers these days gives owners across a range of financial qualifications the opportunity to give their dream business a shot. 

How much does it cost to finance a food truck?

On the low end, it will generally cost at least $50,000 to start a food truck anywhere in the United States. However, that cost could rise after permitting fees, the cost of advertising your new enterprise, buying new supplies, and hiring new employees. Depending on where you want your food truck to be and the kind of food you’re looking to serve up, you could also be looking at upwards of $80,000 to get a high-end food truck in a prime location going. 

Can you get a business loan for a food truck?

If you’re wondering if you can use a standard business loan to finance a food truck, you’re in luck. Because a food truck qualifies as a business, you’ll be eligible to receive a wide variety of funding, including traditional business loans and SBA loans. 

Can you get a food truck loan with bad credit?

Even if you have bad credit, it’s still possible to fund your next culinary endeavor. While your credit score is often the biggest factor in determining if you can qualify for a loan or not, there are still several alternative lenders who consider your application on a holistic basis, taking into account your business plan, annual revenue, and past repayment history. 

Best Food Truck Financing Options

Kabbage For Poor Credit

Loan Amounts $2,000 to $250,000
APR Range 24% to 99%
Repayment Terms 6, 12, or 18 months
Time to Funding A few minutes to several days
Credit Score 560+
Click “Check Rates” to apply to Kabbage 

» MORE: Compare Bad Credit Business Loans

Pros:

  • Easy, fast, online application
  • Kabbage Card option for more convenient access to cash
  • Low minimum annual revenue and credit score requirements
  • Easy for new businesses to qualify
  • No collateral required
  • Applications are reviewed on a holistic basis
  • No prepayment penalty

Cons:

  • Potential for APR as high as 99%
  • The lowest possible APR is 24%, whereas traditional loans may offer APRs as low as 7-10%
  • No early repayment incentive
  • Complex fee structure
Loan Amounts $1,000 to $100,000
APR Range 10.1% to 79.8%
Repayment Terms 3 to 6 months
Time to Funding A few minutes to several days
Click “Check Rates” to apply to FundBox 

» MORE: FundBox Business Loan Review

Credibly

Pros:

  • Access to three different financial products
  • Easier for borrowers without strong credit scores to qualify
  • Easy, online application
  • Prepayment incentives
  • Lender is willing to work with borrowers who have declared personal bankruptcy
  • Wide range of loan amounts
  • Comprehensive customer service
  • UCC-1 lien is not required on loans less than $100,000

Cons:

  • Origination fee of 2.5%
  • Potential for triple-digit interest rates
  • $25 insufficient funds fee for bounced payments
  • Shorter loan terms
  • Daily or weekly repayments

How can you buy a food truck with no money?

Even if you don’t have much cash in your pocket, it’s still possible to find the funding to purchase a food truck and all of the necessary supplies. It may be difficult to qualify for a traditional loan if you’re not already an established business owner, so considering other methods such as equipment financing, which allows you to use your purchase as the collateral for a loan, or using a business line of credit that allows you to gradually increase the amount of cash that you have access to, can help you buy the food truck of your dreams even if you’re short on funds. 

Equipment Financing For Food Trucks

Pros:

  • Quick access to cash, with many online lenders offering turnaround times of just one to two business days
  • Most online applications are quick and easy, with limited paperwork
  • Equipment serves as the collateral for the loan
  • Full ownership of equipment

Cons:

  • Equipment could become obsolete by the time the loan is fully repaid
  • Equipment can depreciate quickly
  • More expensive than purchasing equipment outright
Loan Amount: $10,000 - $350,000
APR Range: 8.00% - 25.00%%
Time to Fund: Typically 7 days
Loan Term: Up to 3 years
How To Qualify: 680+ Personal Credit Score
$250,000+ Annual Revenue
Great Option For: Borrowers With Good Credit
Short & Medium-Term Financing
Click “Check Rates” to apply to Credibility Capital 


Term Loan
Loan Amounts $2,000 to $250,000
APR Range 24.00% to 99.00%%
Repayment Terms Up to 3 years
Time to Funding Typically 1 - 5 days
Click “Check Rates” to apply to StreetShares 

Loan Amounts $5,000 to $500,000
APR Range As low as 9.99%
Repayment Terms Term loans up to 3 years
Time to Funding As fast as 1 day
Click “Check Rates” to apply to OnDeck 

» MORE: OnDeck Business Loan Review

Crest Capital

Pros:

  • Access to up to $500,000
  • Repayment terms as long as 74 months
  • No liens or collateral required beyond the equipment financed
  • Applications evaluated within four hours

Cons:

  • $275 administrative fee
  • Difficult for applicants with average credit to qualify, with a minimum required score of 650
  • Difficult for new businesses to qualify, with a minimum time in business requirement of two years

Lendio

Pros:

  • Potential access to up to $5 million
  • Borrowers have access to several different lenders through just one application
  • Easy for new businesses or borrowers with low credit to qualify
  • Loans take as little as a few business days to fund
  • Fast, easy online application that can be completed within minutes

Cons:

  • Potential for high interest rates and fees
  • Hard credit checks for some loans
  • Potential for short, inflexible repayment terms

Business Lines of Credit

Pros:

  • Evens out cash flow between lulls in income
  • Borrowers only pay for what they use
  • Can improve overall credit score

Cons:

  • Can be more expensive than a standard term loan, with transaction, withdrawal, and maintenance fees
  • May be more difficult to qualify for than a term loan
  • Does not provide access to as much cash as some term loan lenders

» MORE: Business Line of Credit Options

SBA Microloans

Pros:

  • Faster funding time than a standard SBA loan, with most becoming available within just one month
  • Provide lower interest rates than many traditional and online lenders
  • Can be used for a wide variety of business purposes

Cons:

  • SBA Microloans come with spending restrictions that regular term loans don’t come with
  • Longer time to disbursement than with online lenders
  • Borrowers must meet SBA as well as lender qualifications

Business Credit Cards

Pros:

  • Borrowers only pay for what they use
  • Provides more convenience than a traditional or online term loan
  • Allows businesses to pay for unexpected expenses without having to wait for a loan to fund
  • Timely repayments can improve overall credit score

Cons:

  • Transaction, withdrawal, and maintenance fees may increase the overall cost of funding
  • Business credit cards often have stricter qualification requirements than term loans
  • Does not provide access to as much cash as some term loan lenders

» MORE: Business Credit Card Options

Crowdfunding

Pros:

  • Usually cost less than term loans
  • May provide access to larger amounts of cash than other methods, with the help of committed investors
  • Can be a good option for new businesses that do not yet have strong financial qualifications or multiple years of operational history

Cons:

  • Dealing with multiple investors can become time consuming
  • Investors can back out, meaning that the cash flow isn’t always guaranteed
  • Funding can be dependent on hitting financial targets, so the stakes are higher to keep the funding

Conclusion

Starting a new food truck can be a fun and exciting process, whether you’re doing it for the first time or simply expanding an already existing chain that you own. Either way, you’ll likely need a bit of cash assistance on the way. If you’re looking for help making a down payment on the truck or initial supplies themselves, an SBA microloan or online term loan could be the best way to get access to that funding in one lump sum. However, if what you need is a bit of cyclical assistance to help with routine purchases along the way, a business line of credit would be ideal. No matter what your financial situation looks like, make sure to evaluate a variety of loans and offers before making the final decision on the form of financing that’s right for you and your new business.

Compare Business Loans

Ready to find the funding you need?

DISCLAIMER
See the online credit card applications for details about the terms and conditions of an offer. Reasonable efforts are made to maintain accurate information. However, all credit card information is presented without warranty. When you click on the “Apply Now” button, you can review the credit card terms and conditions on the issuer’s web site.

ADVERTISER DISCLOSURE
The offers that appear on this site are from third party advertisers from which PrimeRates receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). PrimeRates strives to provide a wide array of offers, but our offers do not represent all financial services companies or products.

Scroll to Top