Food Truck Loans & Financing

What is a Food Truck Business Loan?

Food truck business loans are industry-specific loans offered by traditional and non-traditional lenders to support a range of business needs. Though maintaining a food truck business can be more affordable, there are still significant costs associated with the upkeep of this small business. Food truck operators experience broken equipment, employee turnover, and customer gripes like any food service business. The best solution for small and growing businesses is acquiring the working capital to enhance their endeavors.

First Union Lending is here to help! Various loan options can help your food truck business thrive.

Types of Food Truck Business Loans & Financing Options

Once you've confirmed the need for funds provided by a lender, consider the factors that are most important to you. Business owners should look for loans that offer great interest rates, down payments, and collateral requirements. Here are the more widely used loans to help fund growing food truck businesses.

• Equipment Financing: Businesses can use equipment loans to buy any appropriate equipment needed. Businesses will often need to purchase, replace, repair, or upgrade various equipment to process, manufacture or produce their products or services.

  Equipment can include brewing and cooking appliances, phone systems, computer monitors, furniture, tools, vehicles (for commercial use), specialized equipment, and more.

• Business Line of Credit: Banks, financial institutions, and other licensed lenders often extend credit to creditworthy customers to address fluctuating cash flow needs of the customer. The maximum of funds a customer can draw from a line of credit is typically called the credit limit or overdraft limit.

• SBA 7(a) Loan: 7(a) loans are most common within the SBA family. With access to up to $5 million in working capital for 25 years, these types are typically adequate for most industries. Interest rates are between 7-8% depending on trade and the nature of your business. Most businesses opt-in for an SBA loan will fall under this 7(a) category.

  Businesses can use this type of loan funds for working capital, commercial real estate, equipment, and other business-related expenses.

  Other SBA options

  SBA Express Loan: Considered the simple way to receive expedited, amortized government-guaranteed financing for your small business. This category of the SBA loan family allowed borrowers to receive up to $350,000 in the capital in a term loan or line of credit.

  SBA Microloan: This loan program provides funds up to $50,000 for borrowers to purchase inventory, supplies, or equipment or use as working capital loans. This loan option is excellent for businesses run by women, minorities, veterans, low-income, or other underserved groups.

• Merchant Cash Advances (MCA): This funding method works for businesses whose revenue comes primarily from credit and debit card sales, such as restaurants or retail shops. Borrowers can receive an upfront lump sum of cash in exchange for a portion of your future credit or debit sales, or you can repay by remitting fixed daily or weekly debits from your bank account with ACH withdrawals.

How to Apply for Food Truck Loans: Requirements and Getting Started

If your business has come to the point where funds are needed to generate a greater profit return, acquiring a small business loan may be the best option.

First Union is here to help.

Submit your business information below to determine if you qualify for any available small business loans. Our Funding Specialists will analyze your qualifications and will reach out to walk you through the remaining steps.

While each of the available loans have varying qualifications, lenders will typically ask for the following general information:

• Business Operation History
• Business Revenue Statements
• Personal & Business Credit Scores
• Collateral if needed

In the past, loans for businesses within the food services industry were harder to acquire because the sector was considered risky. Traditional lenders and banks often involve collaterals and place a strict repayment schedule - stressing out borrowers who need capital to grow. Online lenders like First Union provide food truck businesses with the necessary funds to grow and succeed.

If you have questions in regards to any food truck-related business loans, give us a call: 863-825-5626

Advantages of Utilizing Food Truck Business Financing

There are many benefits in partnering with a lender to gain funds for business initiatives depending on the loan. The funds from these financing options can solve various issues within the foodservice industry.

Truck maintenance is considered an extra expense that many operators require to keep operations running. It provides the working capital needed for borrowers to maintain and repair their vehicles. As time goes on, a food truck will need upgrades, repairs, exterior remodeling to retain or attract customers.

These funds are not limited to just maintenance, and companies can use them to enhance your business advertising and equipment if needed. In today's world, internet marketing is a must to create a name for your business. Having a presence on the internet will help keep your small business populating on Google Search results, thus bringing in more customers.

Keeping up with adapting technological equipment is also a must. Point of Sale (POS) systems are continuously enhanced to streamline your business better. Stay on top of the latest upgrades to the system by utilizing the necessary funds when needed. Quick card processing and easy-to-use systems will positively impact your customer and staff experiences.

These loans can also help keep your mobile kitchen running smoothly. Use the funds to repair or replace essential equipment when needed. Utilizing out-of-pocket funds can be expensive. Look to a lender to finance your initiatives and keep your business running.

Choose First Union Lending As Your Premier Lender

At First Union Lending, we have an unwavering belief that small and medium-sized businesses deserve the right to access the capital they need to succeed.

Our goal is to build long-term, lasting relationships by providing business owners with what they need when they need it. We pride ourselves on being educated, knowledgeable, and caring about conducting business. We have voluntarily acquired much of the same licensing traditional banks require to cement our fiduciary responsibility to our clients and work culture.

We are here to consult, help you save, and guide you and your business to success.