Food trucks are an exciting business but where will you get the money or food truck loan ?
Are you looking to start a food business and need fast business loans? Are you lost in terms of finding the best available food truck finance or food trailer finance? We have all sorted it out here for you. We have gathered all the options for your food trailer business and we will highlight the best three here in this article.
As a new business owner, a food business is worth a try and for that purpose, a food trailer is one of the best options, to begin with as it offers guaranteed business. However, financing your food truck and finding the investment might be one heck of a task. We have options researched for you which are fast and simple providing fast business loans to the small-scale business owners in they market.
One of the priorities in a food trailer business is the equipment itself. To start a food trailer business, one needs a truck, oven, stove, and other related equipment. For that purpose, there is an option for equipment loans. You can take an equipment loan for the utensils you need and you can keep paying in installments and use the utensils at the same time. Although the title remains with the lender until the whole loan is paid, the buyer still can use the equipment in his/her business.
This is the best way to secure all the utensils you need without paying the full price upfront. You can apply and get equipment loans from Wells Fargo (Gitlen, 2022). You can also get a loan from National Funding where you can get up to $5000 to $500,000 for used or new equipment. The loans are given for 2 to 7 years with a 1.09% factor rate (Marticio, 2021). The best part about national funding is that they do not require a down payment so it is a plus for all the borrowers who don’t have hard cash with them.
They will respond within 72 hours and hopefully, they will respond with the money you need for your business. This is the best option for your food truck finance or food trailer finance.
If you are an underserved business owner and have no or very less income, microloans are your best option to get a fast business loan and start with your food trailer business. Mostly, all the non-profit organizations and government organizations provide microloans which can be to $50,000 at 0-20% rates. The terms can be from 2 to 7 years (Marticio, 2021). The Small Business Administration (SBA) Loans also have an option of microloans. This loan scheme gives from $100 to $50,000 so if you are looking for a small loan to just kick-start your business, this is your best option (Gitlen, 2022). They will ensure guaranteed business loans.
If you have applied for loans but failed to meet their requirements, you must lack the funds to start your business and arrange food truck finance. If you do not have the requirement but have time and skills, Crowdfunding might be a good option here as you do not have to repay any amount even if your business is boosting. This makes this option less-loan-like funding.
However, raising funds here might not be as easy as you think. It will need outreaching and marketing skills to convince the public to give funds for your business which ultimately will require time, a lot of time.
Be cautious while using these platforms as some have all-or-nothing funding models meaning that if you are unable to meet your goal amount, then you get no funds and everything will be returned.
The platforms to avail these types of fast business loans are Kickstarter, GoFundMe, and Indiegogo which might charge fees of up to 5%. Other than that, this is also a good option and the best part is that you don’t have to pay back the funds.
It will be all yours.
There are more options out there for financing a food truck or a food trailer business but these three are in our opinion, the best options you can get for your concession trailer business.
We hope this helps. We wish you good luck with your new business.
Cox Business News staff Writer
Journalists from around the world writing to give you answers, with Assitant Editor Dr Muhammad Hassan Fayyaz for articles in June and July 2021
The Editor In Chief of Cox Business News