Starting a food truck, just like any other business, requires a start-up investment. You need money to purchase your truck, get permits, and buy kitchen and food supplies.

There are several ways to raise the money to get your food truck venture off the ground. You can find investors, you can use cash on hand, or you can save up the money over time. For many owners though, the most convenient way to get a food truck going will be via a business loan.

Keep reading to find out how to get food truck financing.

1. Start With Market Research and a Business Plan

Before starting any business, you need to do your homework. You need to understand the local market in terms of competition, demand, pricing, costs, regulations, and more. You need to determine if your business idea is viable and what your opportunity will be for growth and success.

Then, you can build a business plan. This is an essential document that lenders or investors will look at to judge the credibility of your future business. 

Fortunately, there’s much less risk involved with a food truck than a traditional restaurant. Your overhead costs will be far cheaper, you’ll have fewer employees, no dining room, etc. This will make it easier to get financed.

2. Small Business Loans

Can you finance a food truck through a traditional bank or SBA loan? The answer is yes, assuming your business plan is well-written and you have an acceptable credit score.

First, you’ll need to come up with a dollar amount of how much startup money you will need. Then, do some research on the various types of loans available and figure out which one will best meet your needs. 

3. Private Investors

If you get turned down for a small business loan, you can seek private investors for food truck financing. There are multiple options here. 

First, you can try to find an angel investor. They will provide the startup funds you need in exchange for equity in the business. They may also allow you to pay back your debt over time instead of taking equity.

There are also peer to peer investors. These are organizations that invest in small businesses they see potential in. They basically provide loans like a bank but aren’t a bank. 

4. Crowdfunding Campaigns

Another option for food truck and food truck equipment financing is crowdfunding campaigns. This provide a great way to make money if you’re turned down by the bank and traditional investors. Crowdfunding relies on larger groups of investors all contributing small amounts to pool together the necessary funds.

Contributors can be rewarded with stock in the company, free products, etc.

5. Friends and Family

Can you finance a food truck without applying to banks or investors?

Yes, you still have options. Consider getting funds from people in your personal life. These include friends, family members, neighbors, and co-workers. 

You should still provide a business plan to show them how serious you are and that their investment won’t be wasted. This may mean you need to finance a smaller or more modest food truck instead of the huge truck that costs more, or cut startup costs elsewhere.

So, Can You Finance a Food Truck?

Are you ready to start a food truck restaurant? If so, we can help. Now that you know the answer to financing your food truck, let’s talk about getting you on your way. Contact us today for a custom quote!

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

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The post Can You Finance A Food Truck? How To Get Food Truck Financing appeared first on Custom Concessions.

Photo by TJ Dragotta on Unsplash

Back when the 2008 recession hit, lost wages combined with the prohibitive cost of property investment meant entrepreneurs had to get creative with how they started businesses. Food trucks became a great way for people from all backgrounds to make a living, provide affordable meals, and share delicious food with others.

Since then, the food truck industry has taken off. Are you hoping to join the ranks of successful food truck chefs?

Before you head out onto the road, be sure to read about these common food truck myths.

1. Park Anywhere

Food trucks are governed by the same traffic laws as ordinary citizens. Some cities have even tighter regulations on food truck parking.

Check your local ordinances and see if there are special designations or time limits for food trucks. It’s also always best to check with building management before parking in a lot.

2. Bad for the Environment

It isn’t good for the environment when a truck is constantly driving around. Fuel consumption and emissions are a big concern for our climate. 

Fortunately, food trucks are parked more than they are driving. Restaurants with permanent locations may actually pollute the environment more.

Energy consumption and employees driving to a permanent restaurant location exceeds the pollution of a food truck. Myths about the environment might have been started because of the competitive rivalry between food trucks and restaurants.

3. Investors for a Food Truck

A big myth circulating the industry is the need for investors. Most food trucks start without investors. 

Some owners are able to attract investors, and this makes a startup food truck easier. But don’t let a lack of investors halt your food truck dreams.

4. No Rent

Many people believe food truck owners don’t have to pay rent. This might be true, but truck owners still have other fixed expenses.

You will still have to pay for permits, fuel, licenses, maintenance, and staff. You can also get tickets or towed if you aren’t careful, so it’s helpful to keep money set aside for emergency expenses.

5. Popular Spots

Food trucks can be wildly successful without ever visiting a popular shopping or entertainment location. These spots can actually be too full of other food options.

Many successful food trucks are able to make a good profit by visiting business parks and college campuses. A large factory may allow a food truck to set up near the front entrance.

As long as there are lots of people, a truck owner will have the opportunity to feed hungry mouths.

6. Experience Makes a Master

Have you worked in a food truck? This doesn’t mean you are ready to own one.

Working in the growing industry gives you a strategic advantage over someone who hasn’t, but it doesn’t mean you’re ready to run the business.

Like any business, owners are constantly working on their business even after close. You will be in charge of marketing, business development, creating the menu, and bookkeeping, so make sure you understand all the ins and outs before buying a truck.

7. You’ll Get Rich Quick

Food trucks can make plenty of profit, but they also have expenses. The amount of work you put in is how much money you can make.

The food truck business is not a get-rich-quick scheme. You will spend long hours on the road and at events, but you’ll be cooking food you love for tons of people.

Get Rolling

These myths about the food truck business shouldn’t scare you. Now that we’ve cleared them up, it’s time to rely on your expertise and culinary creativity to push you to success.

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

Stay up to date on everything Custom Concessions has to offer! Like us on Facebook and follow us on Twitter.

The post 7 Common Food Truck Myths Future Business Owners Should Be Aware Of appeared first on Custom Concessions.