Food trucks combine a restaurant business with a vehicle — and each element has specific financing options. Here is how to fund every stage.
Food trucks are one of the most dynamic segments of the restaurant industry -- lower overhead, built-in mobility, and a loyal following. But getting a food truck off the ground still requires capital. Here's everything you need to know about financing a food truck business.
How Much Does It Cost to Start a Food Truck?
- New food truck: $75,000--$175,000
- Used food truck: $20,000--$75,000
- Custom-built trailer: $50,000--$100,000
- Kitchen equipment: $10,000--$30,000
- Permits, licenses, and branding: $5,000--$15,000
- Initial inventory and supplies: $2,000--$10,000
Total startup costs typically fall between $40,000 and $200,000 depending on your market and concept.
Food Truck Financing Options
Equipment Financing / Vehicle Loans
The most straightforward way to finance a food truck is through equipment financing. Because the truck itself serves as collateral, lenders are more willing to approve these loans even for newer business owners. Loan amounts typically match the truck value (80%--100% of purchase price), with repayment terms of 3--7 years.
SBA 7(a) Loans
For established food truck operators looking to expand, SBA 7(a) loans offer competitive rates and terms up to 10 years. You'll need at least 2 years of business history and solid revenue documentation.
SBA Microloans
If you're just starting out and need under $50,000, an SBA microloan can cover a used truck and initial working capital. Available through nonprofit intermediaries and CDFIs with flexible requirements.
Business Lines of Credit
A business line of credit works well for covering operational costs between busy seasons, stocking up on inventory before events, or handling unexpected repairs.
Merchant Cash Advances
If your food truck processes significant credit card sales, an MCA can provide fast capital repaid as a percentage of daily sales. Use sparingly -- MCAs carry high effective interest rates.
What Lenders Look for in Food Truck Financing
- Time in business: 6+ months preferred
- Monthly revenue: Most alternative lenders want $5,000--$10,000/month minimum
- Credit score: 600+ for equipment financing; 650+ for SBA loans
- Business plan: Essential for startups seeking SBA microloans
- Permits and licenses: Proof of health permits and business registration
At Approvd, we work with food truck owners at every stage. Use our loan calculator to model payments, then see what financing options you qualify for with no impact to your credit score.
Frequently Asked Questions
Can I get a food truck loan with bad credit?
Yes. Equipment financing is often available with credit scores as low as 580--600 because the truck secures the loan.
Can I finance a food truck startup with no revenue?
It's difficult but possible with SBA microloans, CDFI loans, or equipment lenders if you have a strong business plan and good personal credit.
How long does food truck financing take?
Equipment financing and alternative lenders can approve and fund in 1--5 business days. SBA loans take 2--8 weeks.
Food Truck Financing Options and Costs
| Financing Type | Best For | Typical Rate | Amount |
|---|---|---|---|
| Equipment/Vehicle Loan | Buying the truck | 5–20% APR | $30K–$200K |
| SBA Microloan | Startup + equipment | 8–13% APR | Up to $50K |
| SBA 7(a) | Established trucks, expansion | 10–13% APR | $50K–$500K |
| MCA / Revenue Advance | Working capital, fast need | 40–100% APR | $5K–$100K |
| Business Line of Credit | Inventory, seasonal gaps | 15–35% APR | $10K–$100K |
What Lenders Look For in Food Truck Applications
Food trucks sit in an interesting space for lenders — they're seen as higher-risk (seasonal, location-dependent, high operator dependence) but also have clear collateral in the truck itself and often generate strong daily cash flow. Key factors that strengthen your food truck loan application:
- Consistent daily sales records — POS data showing reliable daily revenue across multiple seasons
- Multiple revenue streams — catering contracts alongside street vending reduces single-location risk
- Strong social media presence and reviews — some lenders use this as a proxy for demand and brand strength
- Established commissary kitchen relationship — shows operational infrastructure beyond just the truck
- Health permits and licenses current — operational compliance is a basic lender requirement
New vs. Used Food Truck: Financing Considerations
New custom food trucks cost $75,000–$200,000+ and can be financed through equipment lenders, often with little to no down payment. Used trucks in the $30,000–$75,000 range are more accessible but lenders will want an inspection and may require a down payment of 15–25% due to higher depreciation risk on older vehicles. Many food truck entrepreneurs start with a used truck financed via SBA microloan or equipment financing, operate for 1–2 years, then upgrade to a custom truck using SBA 7(a) financing backed by their established revenue history.
Finance your food truck with Approvd
Approvd connects food truck owners with the right lenders for equipment, working capital, and expansion. Explore SBA financing options or use our loan calculator to see what you qualify for.