man calculating costs for a food truck business

First look at Food Truck Financing

 

The food truck industry is growing and you want to be a part of it! You will be a success if you could just get in there. If you could get your foot in the door and finally purchase that food truck, you know you could do it! Right? Well, let’s get you Food truck financing together!

Credit

So, what do we need to look at first? Let’s take look at your credit. Just because your credit is bad does not mean you have to call it quits for your Food truck financing. What it means, is that you have to take a couple extra steps. There’s always a way to finance your food truck. When an establishment loans money to you, they want to know that it was worth it.

So, when you are looking for a food truck and food truck financing, look for something with a little quality. A quality food truck will let your lender know that you are serious about your food truck business and the purchase. Show them that you have standards for where their money will be going.

Cosign

The extra step that you might have to take is getting a cosigner. The person you choose as your cosigner will be required to have good credit. The person that will cosign for you should believe in your journey, because they ultimately will be held responsible for that loan.

So, make sure you trust them and that they can trust you too. Cosigning for someone is a big deal.

Down Payment

Next, you should find out how much the down payment will be, because you might need down payment assistance. What is a down payment? It’s a cash payment made at the beginning of a purchase. The down payment is usually a certain percentage of the full price and typically not refundable.

If you are looking at a specific company and a certain price range, they will most likely have a fixed percentage for down payments. Go over those details with the company, because they always vary. Figure this number out, and start working towards it. There are many ways to come up with your down payment.

Easy tips for getting your down payment

-Start by looking into things you could sell from your personal property. There are so many things we forget about in our homes that can be turned into cash.

-Think about asking for a raise at work, it never hurts to ask.

-Maybe you have the spare time to get a second job.

-Factor in how long it might take to acquire a certain amount of money and go from there.

-Ask family and friends for help. You might be surprised who wants to donate to your dreams.

Collateral

You might be required to have to collateral to get financed. Your collateral will be your personal property that has worth, such as your house, car, boat, business, etc. You can go over these details when you talk to your bank or another financial institution. You will find someone that will help you finance your food truck business. Ask around, because you might know someone who has gone through a financing process before.

For those of you that have good credit, you still have to reach some of these steps. You will most likely be required to have a down payment and collateral to receive financing. If you don’t have collateral and you don’t have the down payment, you should take a step back and reevaluate the situation.

Remember, there are processes for everything, including Food truck financing. So, you need to do your research and be prepared.

Remember

It’s okay if you’re not ready. It’s always better to start a little later, than to start and not have been ready. Get excited about your future—but be smart about the decisions you make along the way!