Operating a food truck can be a capital-intensive enterprise. If you want to pay wages, purchase supplies, maintain your truck, and lease much-needed equipment, access to external funding may be necessary. PaymentCloud offers:
Whether you're a food truck industry veteran or starting your first business, obtaining capital can be one of your most challenging hurdles. Even if you currently run a successful food truck enterprise, the funding you need to purchase or upgrade equipment can be outside of your existing revenue streams.
Food truck and trailer financing is one of the leading ways food truck business owners access the cash they need for growth. At PaymentCloud, we help our food truck partners achieve their dreams. Our quick and affordable funding options help you cover expenses and invest in your business's future.
Food truck owners use a wide range of loans to fund their businesses. If you want to finance food trucks, here are your choices:
Many equipment companies offer leasing options that make obtaining equipment more affordable for business owners. However, for food truck business owners who want to own their equipment permanently, equipment-specific loans can reduce the upfront burden of buying machinery, trucks, and other products. These loans often include payment terms that fit the lifespan of the equipment.
The Small Business Administration (SBA) offers microloans of up to $50,000 for small businesses seeking to cover various costs, including equipment purchases, working capital, supplies, inventory, and more. These loans are offered via intermediary lenders. As SBA microloans are backed by the SBA, lenders can provide affordable interest rates that make these loans accessible for food truck owners.
Crowdfunding allows multiple investors to pool their money together to fund a business. This type of funding is either offered as a loan (with interest payable to the investors) or direct investment (with equity sold to investors). This can be a suitable funding option if your food truck's fans want to participate in your success!
Business credit cards provide revolving credit that business owners can use to pay for materials, food, utility bills, gasoline, and more. Credit cards also make it easy for your business's staff to pay for necessary expenses when you're not around.
A business line of credit is another form of revolving credit. A lender will approve you for a borrowing limit, and you can withdraw money from the line of credit as you see fit. Unlike term loans, you won't need to pay interest on the full borrowing limit - you only pay interest on the money you access from the line of credit.
Unlike business credit cards, business lines of credit don't typically charge extra for cash withdrawals. If you have cash-only suppliers, this type of financing is a good option.
If a business has a poor credit score, bad credit business loans may be the only option. This type of loan may require collateral, higher interest rates, or other terms that protect the lender from borrowing risk.
Qualifying for food truck financing will depend on various factors - each lender will have a unique set of requirements. When determining if you're eligible, lenders will assess your business's revenue, debt, business plan, and other factors. Likewise, many lenders will inquire about your experience as a business owner before making a loan decision.
Always prepare before submitting a loan application:
Write a business plan that outlines your business's core features and goals
Check your business credit score for errors or solvable problems
Ask your lender about their borrowing requirements
Obtain copies of your business's financial information, including bank statements, tax information, etc.
Obtain information regarding your business's incorporation, ownership structure, and other core details
Your business's credit score will play a significant role in your ability to obtain financing. This credit score will reflect loan payments, bad debts, current borrowing, and other financial factors that dictate your creditworthiness.
However, if you don't have a business credit score, you may be able to use your personal credit score. Paying existing debt and removing mistakes from your credit report s always a good first step before you apply for a loan.
Yes. While it can be more difficult to obtain financing through traditional lenders - such as banks and credit unions - our alternative lenders can provide truck financing with bad credit.
Food trailer financing rates and terms will vary depending on various elements, including your business's credit score, the type of loan you're accessing, and the purpose of the loan. If you're seeking a no-collateral loan with flexible terms, you can expect to pay a higher interest rate than a borrower that has collateral to offer to their lender.
Understanding your loan's payment terms is essential before financing a food truck.
If you're seeking food truck loans, there's no better financing partner team than PaymentCloud and Wisco. We offer a range of benefits to our clients:
We have a longstanding reputation for getting food truck business loans accepted. Our team understands the needs of food truck owners, and we can provide workable payment plans that fit your revenue timelines and financial requirements. If you want to finance a food truck, we're the perfect partner!
We make applying for a food truck loan as simple as possible for our clients. Our approach to financing involves minimal paperwork and quick approvals - which ensures that you can focus on the components of your business that matter!
24/7 support for our clients is crucial. If your food truck business needs help with financing, we're always ready to provide assistance. Customer support is our top priority!
Many times, companies are wary of securing food truck loans because they’re worried they won’t qualify for a traditional business loan. Business loans of all types help businesses secure the capital they need to cover expenses, grow their business, and purchase necessary equipment to expand and continue operations. If you’re looking for quick, easy, and affordable food truck financing, your search may be over.
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If you’re ready to take your food truck business to the next step, PaymentCloud and Wisco’s funding services are the perfect solution. We offer flexible financing with competitive rates. Call now to find out more.