Finimpact

Best Food Truck Loans

Opening a food truck can be a costly adventure. Between the truck, licensing and permit fees, and kitchen supplies, costs can really add up. Unless business owners have all the funds saved up they may need food truck financing.

Food Truck Loans
Katie Oelker
Written by:Katie Oelker
Personal Finance Expert

Because food trucks don’t always operate year-round, and factors such as weather can impact their ability to be open, cash flow problems for food truck businesses can exist. Equipment including trucks, parts, and the maintenance of these things can be a large expense for food truck business owners to afford.

But food truck loans are typically a high default risk for lenders due to cash flow shortages, making traditional lenders hesitant to extend credit. The lenders in this article do provide food truck financing, giving businesses the cash flow they need to stay afloat during slow times. Our team of financial experts reviewed and ranked the top online food truck lenders to help you get the funding you need.

Our Top Picks for Food Truck Loans

forafinancial
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$750K
Loan Repayment
Loan Repayment 4-15 months
biz2credit review
  • Multiple loan types available
  • Funding in 48h
  • Soft credit pull
credit score
Min. Credit Score 600+
loan amount
Loan Amount $25K - $6M
loan repayment
Loan Repayment 12-36 months
bluevine
  • Quick and simple application
  • Competitive interest rates
  • Available to customers with relatively low credit scores
Credit Score
Min. Credit Score 600+
Loan Amount
Loan Amount $5K-$250K
loan repayment
Loan Repayment 6-12 months

How to Choose the Best Food Truck Loan?

When deciding between the different small business loans and lenders to choose from, there are a few things to consider. Our experts used these factors to rank lenders:

  • Loan Features: When looking at different food truck loans consider how long you will have to pay the loan back, as well as the option to defer or postpone payments if needed.
  • Application process - Consider how invasive the application process is, including what the requirements are as well as how long it will take to complete the process and have funds in hand.
  • Interest rates and fees - Be sure to look for the lowest rates you can find to save in interest. Inquire about any fees associated with borrowing funds, including origination fees.
  • Qualification process - When looking at how to get a loan for a food truck, each lender will likely have their own minimum credit score, annual revenue, and business history requirements.
  • Customer support - Make sure to look at which lenders give you access to live representatives, if this is important to you. Also consider whether the company offers other ways to get in touch, including through an app, email, or through live chat.
  • Online user reviews - A quick Google search should be able to provide insight as to how others have viewed their experience and be sure to look at reviews on independent sites like Trustpilot.
  • Perks and Bonuses - Consider specified service offerings like payment flexibility, advertising transparency, and advanced technology.

Best Food Truck Financing Options for 2022 - Full Overview

1. Fora Financial - Best for New Food Trucks

Fora Financial offers both small business loans and merchant cash advance programs for food truck entrepreneurs. Interested borrowers can apply online and receive funds in as little as 72 hours with most applications approved or rejected within 24 hours. With terms up to 15 months, early payoff discounts and no collateral requirements, Fora Financial can be a solid choice for food truck financing.

Pros
Larger loan limit than most competitors
Only 6 months in business required
Secure online portal
Cons
Highest annual revenue required
Must have at least $12,000 in revenue a month
No bankruptcies within past year


Fora Financial business loans require the business to be operating for at least 6 months and have a minimum of $144,000 annual revenue. If a potential borrower qualifies they will be offered a loan from $50,000 to $500,000 depending on their needs.

The Bottom Line

Fora Financial is a great choice for food trucks as they specifically offer a food truck financing option. They have partnered with over 3,000 business owners looking for food industry financing, and have extended more than $100 million in funding, making them an experienced lender in the food truck financing industry.

2. Biz2Credit - Best for Equipment Financing

Founded in 2007, Biz2Credit has helped more than 225,000 business owners obtain more than $7 billion in financing. The two main types of financing they offer for small businesses are working capital and term loans. However, they also specifically offer restaurant equipment financing, perfect for financing a food trailer.

Pros
Available for startups
Can use new equipment as collateral
Mobile app for customers to track application
Cons
Equipment financing only for actual equipment
Loan may outlive useful life of equipment
Potentially higher interest rates


Borrowers must be in business for at least 13 months to qualify for equipment financing. A great option for startups as interested entrepreneurs can look to borrow $25,000 to $100,000 with rates from 7.99% to 30%. If the business is well established, interested owners can look to borrow more than $100,000 at much lower rates, from 5.99% to 7.5%.

The Bottom Line

As new food truck equipment can be used as collateral, equipment financing tends to have lower rates and terms from 7-10 years, compared to only 2-5 years with unsecured lines of credit. Thus equipment financing can be very useful for food truck business owners, with Biz2Credit as a top choice.

3. BlueVine - Best for Line of Credit

BlueVine offers a business line of credit that you can use for truck financing. A line of credit can be the difference between keeping a food truck or trailer business afloat versus going under. If the truck is experiencing slow months or in an off season, a line of credit from BlueVine can make it possible to afford expenses such as staff, inventory, and truck maintenance until business picks up again. BlueVine also offers business banking helping customers keep more of their banking business in one place.

Pros
Can pay bills with credit card
Also offers business banking
Pay bills online automatically
Cons
Unavailable in Nevada, North and South Dakota
2.9% fee added if paying back by credit card
$15 per transaction if money is wired


In order to qualify for a BlueVine line of credit business owners must have a credit score of at least 600 and be in business for at least 6 months. Their business must also have $120,000 of minimum annual revenue. Rates can be as low as 4.8% for up to $250,000 worth of funding. BlueVine allows borrowers to take out money through their line of credit and pay back each draw with fixed monthly or weekly payments over the course of 6 to 12 months.

The Bottom Line

BlueVine is a good choice for food truck businesses looking for a line of credit with lower rates than competitors with the ability to pay back up to one year. They also allow bills to be paid automatically with a credit card helping food truck entrepreneurs earn rewards or cash back, which is a unique feature to BlueVine.

Try BlueVine

4. Fundbox - Best for Smaller Businesses

Fundbox offers both term loans and lines of credit for small business financing. Term loans are typically used for financing vehicles and machinery, making it a great choice for food truck owners. They also offer a 24 or 52 week payback period for term loans.

Pros
Only need $100,000 in annual revenue
No early prepayment or origination fees
Premium membership with unique features
Cons
May require a lien on business as collateral
May be reliable personally if business fails
Smaller line of credit versus competitors


Fundbox can give interested business owners a line of credit up to $200,000 if the borrower has a credit score of at least 600 and has been in business for at least 6 months. Qualified borrowers can enjoy rates starting at 4.66% if they have at least $100,000 in annual revenue.

The Bottom Line

Compared to competitors, Fundbox has smaller time in business and annual revenue requirements, at 6 months and $100,000 respectively. This makes it a good option for newer food truck businesses that haven’t been in business as long or made as much money yet.

5. Credibly - Best for Bad Credit

Credibly offers several types of business loans including working capital, lines of credit, and short term business loans. The best loan option for food truck owners is the equipment financing offering. Interested borrowers can prequalify for Credibly’s equipment financing in as little as 10 minutes, get approved in as little as 4 hours, and receive funds deposited into their bank account the same day. Besides flexible terms and low interest rates, equipment financing can also help business owners increase their tax efficiency through a Section 179 tax deduction.

Pros
No credit score required for equipment financing
No minimum annual revenue required for equipment financing
Can obtain same day funding
Cons
Equipment financing loan only to be used for equipment financing
If your equipment needs constant repair, debt may increase
If you default on the loan, your equipment can be collected as collateral


Credibly’s equipment loan does not require a minimum credit score or minimum annual revenue to qualify. This type of loan is typically easier to obtain as the new machinery will be used as collateral. However, if you can no longer repay the loan that equipment will be collected. Rates can start as low as 1.09% and borrowers can obtain as little as $10,000 or all the way up to $10,000,000 depending on the type of business.

The Bottom Line

Credibly has no credit score requirements, which makes them a great choice for businesses or individuals that don’t have credit or have a low credit score. Their equipment loans are tailored to food trucks, making them a good fit for food truck entrepreneurs.

6.OnDeck - Best for Financing Transparency

OnDeck offers both term loans and business lines of credit for food truck financing.Their term loan is a lump sum the borrower will receive one-time and will pay off over a specific period of time, or “term”. The line of credit option allows borrowers to dip into their account (up to $100,000) but only pay interest on the funds they use. Term loans can be paid back up to 12 months, whereas the line of credit option can be paid back up to 24 months later. OnDeck has extended over $13 billion in small business financing.

Pros
Rewards for customer loyalty including better terms and lower rates
Term loans can be used for a variety of reasons including equipment, staff costs, inventory, taxes, etc.
U.S. based loan advisor available 6 days a week for support
Cons
Not available in Nevada, North Dakota, or South Dakota
Very high rates for both line of credit and term loans
Not available for startups


OnDeck’s Line of Credit and Term Loans available for food trucks start at $5,000 and can go up to $250,000 depending on the type of loan. Businesses do need a credit score of at least 600 as well as one year in business. They also must have at least $100,000 of annual revenue. Rates start at 35% to 35.9% for these loans, making them the most expensive loan products in this comparison.

The Bottom Line

With their SMART Box tool, which stands for Straightforward Metrics Around Rate and Total Cost, OnDeck gives food truck entrepreneurs a complete breakdown of potential loan offers. The SMART Box tool helps these potential borrowers understand the loan amount, disbursement amount, repayment amount, and the term in one convenient place making it a solid choice for food truck financing.


Best Food Truck Financing - Features Comparisons

Our experts have analyzed the following companies and their lending requirement metrics including minimum credit score, minimum time in business, minimum annual revenue, loan amounts available, and interest rate ranges.


Company
Min. Credit Score Min. Time in Business
Min. Annual Revenue Loan Amount
Interest Rate
Fora Financial (Small business loan)
Not disclosed At least 6 months $144,000 $5,000-
$500,000

Not disclosed
Biz2Credit
(Restaurant Equipment Financing)
Not disclosed 13 months
Not disclosed $25,000-
$100,000 for startups, over $100,000 for well established businesses

7.99%-30% or 5.99%-7.5% for well established businesses seeking $100k or more
BlueVine
(Line of Credit)
600+
6+ months $120,000 Up to $250,000 As low as 4.8%
Fundbox (Line of Credit) 600+ 6+ months $100,000 Up to $200,000 4.66% to 8.99% and higher
Credibly
(Equipment Loan)
Not required for equipment financing Not disclosed
Not required for equipment financing Fora From $10,000 to $10 million Starting at 1.09%
OnDeck
(Line of Credit and Term Loan)

600+
1 year $100,000 $100,000 Starting at 35.9% for Line of Credit, and 35% for Term Loans

How Can You Use a Food Truck Loan?

Food truck loans can be used for a variety of reasons including:

  • Purchasing a food truck or food trailer - Buyers can decide whether to use the funds for a used or a new truck or trailer.
  • Maintaining a food truck or food trailer - Owners can use money to keep up with the repairs and maintenance required to keep their truck or trailer in running condition.
  • Obtaining food storage systems - Setting up the truck or trailer with equipment and systems is one of the ways borrowers can use funds.
  • Marketing and advertising materials - Another way is to use money borrowed is to help promote the business through marketing and advertising materials.
  • Staffing and payroll needs - Especially during times of growth, business owners may need funds to cover staffing and payroll needs in order to keep up with expansion.
  • Food inventory - Stocking inventory is something every food truck or trailer business needs and a business loan can help cover these expenses.
  • Truck or trailer repairs - As with any vehicle, repairs will be necessary and small business loans can help cover as they add up.
  • Expand your business - When a business owner experiences success and wants to open another food truck, business loans can help get the expansion started.
  • Unexpected bills - Whatever unexpected expenses come up, food truck financing can help cover the gaps and keep your business up and running.

How Much Does It Cost To Finance a Food Truck?

Starting a food truck business can oftentimes cost more than an entrepreneur had in mind, especially depending on where the business is located. Starting and maintaining a food truck can cost on average over $28,000 for permits, licensing, and ongoing legal compliance alone. To get a food truck up and running can take months and cost up to $100,000 or more.

While there are upfront costs such as obtaining a truck or trailer, setting it up, purchasing equipment, and stocking inventory, there are also the long term costs such as maintenance, regulation, and paying employees.

How to Qualify for Food Truck Financing

The ability to qualify for food truck financing depends on the company. Some have higher required credit scores, time in business, and annual revenue requirements than other companies. If you’re curious if you qualify or not, most companies allow you to apply online in order to determine your eligibility and see what options are available for you.

After application you will likely need to submit or electronically link bank statements and other required financial information. Having a proven track record and higher credit score will help guarantee financing options and help secure the lowest rate possible.

How Does Food Truck Financing Work?

After filling out an application online to see if you qualify for financing, a customer service representative may contact you to get further information and discuss loan options. For other companies the entire application may be done online. From there companies will require financial records either by linking your bank accounts to your application or submitting them after applying. Most companies will also pull credit scores.

Once officially approved and depending on the type of financing, some companies will offer same day or next day funds, while others may take a few days or longer. These funds will transfer to your bank account, or if you have a line of credit, you will have a card you can use to access the funds as you need them.

What Credit Score Do You Need to Buy a Food Truck?

Most companies require a credit score of at least 550-600 to qualify for food truck or food trailer financing. However, there may be some companies out there that don’t require a credit score making food truck financing with bad credit a possibility. For companies that do the require a credit score the higher the score the more likely the business will be able to secure a more favorable rate.

Conclusion

Although starting a food truck can be an expensive endeavor, financing a food truck can make it doable. Traditional banks, credit unions, and other small business loans providers may be hesitant to provide lending, but there are several companies that will extend credit. If you are considering taking out a business loan for food truck purchase or maintenance be sure to weigh all options. Your credit score, annual revenue, time in business, as well as other factors will determine how much of a loan you can take out, as well as the interest rate you’ll receive.

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About the Author

 Katie Oelker

Katie Oelker

Personal Finance Expert

Expertise in financial topics including budgeting, saving, simplifying investing, life and disability insurance, credit building and maintenance, and credit card travel rewards

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