Best Food Truck Financing and Loans
Both traditional and online lenders offer loans to help you purchase a new or used food truck for your business.
| Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
|---|---|---|---|---|---|---|---|
 with Fundera by NerdWallet | Read expert review | Best for Low interest food truck financing | $750,000 | 24 months | Undisclosed | Up to 5 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for Food truck startup loans | $150,000 | 6 months | Undisclosed | 24 months to 5 years | with Fundera by NerdWallet |
 | Read expert review | Best for Fast food truck financing | $10,000,000 | 24 months | 5.99% | 24 months to 7 years | |
 with Fundera by NerdWallet | Read expert review | Best for Food truck financing for bad credit | $250,000 | 24 months | 6.5% | 12 months to 5 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for SBA loans for food trucks | $5,000,000 | 24 months | 10.25% | Up to 25 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Best for Covering upfront costs | $1,000,000 | 24 months | Undisclosed | Undisclosed | with Fundera by NerdWallet | |
 with Fundera by NerdWallet | Read expert review | Best for Food truck financing for working capital | $100,000 | 6 months | 35% | 12 to 24 months | with Fundera by NerdWallet |
food truck financing options: More details
Bank of America: Best for Low interest food truck financing
Bank of America offers competitive interest rates on its food truck loans. Preferred Rewards members may also qualify for interest rate discounts.
Bank of America - Equipment loan
with Fundera by NerdWallet
Max loan amount
$750,000
Min. credit score
700
Term length
Up to 5 years
Pros
- Competitive interest rates.
- Longer repayment periods.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
- Fee discounts available for veteran-owned businesses.
Cons
- Charges an origination fee.
- Prepayment fees may apply to early repayments.
- Can be slow to fund.
- Application cannot be completed online.
Pros
- Competitive interest rates.
- Longer repayment periods.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
- Fee discounts available for veteran-owned businesses.
Cons
- Charges an origination fee.
- Prepayment fees may apply to early repayments.
- Can be slow to fund.
- Application cannot be completed online.
with Fundera by NerdWallet
National Funding: Best for Food truck startup loans
You may be able to qualify for food truck financing from National Funding with just six months in business.
National Funding - Equipment financing
with Fundera by NerdWallet
Max loan amount
$150,000
Min. credit score
600
Term length
24 months to 5 years
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
with Fundera by NerdWallet
JR Capital: Best for Fast food truck financing
You can use financing from JR Capital to purchase a new or used food truck, as well as other equipment for your business. Funding is available as fast as two days.
JR Capital - Equipment financing
Max loan amount
$10,000,000
Min. credit score
620
Term length
24 months to 7 years
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
Pros
- Funding available within 48 hours.
- Competitive rates and repayment terms.
- Flexible payment options available, including deferment options for certain industries.
- No down payment required.
- Can be used to build business credit.
Cons
- Must have good credit to qualify for no prepayment penalties.
- Charges an origination fee.
Triton Capital: Best for Food truck financing for bad credit
Triton Capital can provide food truck loans to borrowers with a credit score of 575 or higher.
Triton Capital - Equipment financing
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
580
Term length
12 months to 5 years
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
Pros
- Can fund within one to two business days.
- No prepayment penalty.
- Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
- Charges an origination fee.
with Fundera by NerdWallet
U.S. Small Business Administration: Best for SBA loans for food trucks
SBA 7(a) loans offer competitive interest rates and long repayment terms. These loans can be used to buy a food truck, purchase or upgrade other equipment and cover working capital needs.
Low interest rate
SBA 7(a) loan
with Fundera by NerdWallet
Max loan amount
$5,000,000
Min. credit score
650
Term length
Up to 25 years
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
with Fundera by NerdWallet
U.S. Bank: Best for Covering upfront costs
U.S. Bank offers up to 125% financing to help you cover additional costs associated with getting your food truck up and running, such as freight, taxes or warranties.
U.S. Bank - Equipment financing
with Fundera by NerdWallet
Max loan amount
$1,000,000
Min. credit score
Undisclosed
Term length
Undisclosed
Pros
- Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
- No down payment or blanket lien required.
- Option to finance multiple pieces of equipment on one contract.
Cons
- Can only apply online for transactions under $250,000.
- Interest rates and qualification requirements not disclosed online.
Pros
- Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
- No down payment or blanket lien required.
- Option to finance multiple pieces of equipment on one contract.
Cons
- Can only apply online for transactions under $250,000.
- Interest rates and qualification requirements not disclosed online.
with Fundera by NerdWallet
Headway Capital: Best for Food truck financing for working capital
You can use Headway Capital’s business line of credit to fund the ongoing expenses associated with running a food truck.
Headway Capital - Line of credit
with Fundera by NerdWallet
Max loan amount
$100,000
Min. credit score
625
Term length
12 to 24 months
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
Pros
- Flexible qualification requirements.
- No prepayment penalties.
- Funds available by next business day after approval.
Cons
- Most borrowers are subject to a 2% draw fee.
- Not available in all U.S. states.
with Fundera by NerdWallet
What is food truck financing?
Food truck financing typically refers to a loan that’s used to buy a new or used food truck for your business. These loans are structured like other forms of equipment financing
The term "food truck financing," however, may also incorporate any type of business loan
- Purchasing or upgrading kitchen equipment.
- Buying inventory and supplies.
- Hiring staff and making payroll.
- Improving the truck (e.g., signage, maintenance, repairs).
- Covering day-to-day expenses.
How much does it cost to finance a food truck?
It can cost anywhere from $50,000 to $200,000 to purchase a new food truck. These custom trucks require a lead time to build. The cost of a used food truck, on the other hand, may range from $30,000 to $100,000. You should be able to use these trucks immediately, pending any required maintenance.
Whether you finance a new or used truck, interest rates on food truck loans can range from 5% to 36% APR. The business loan rate
Keep in mind that you may also need to cover soft costs, such as delivery, installation, warranties, taxes and insurance. Some lenders can offer food truck financing that incorporates these costs upfront.
Types of food truck financing
Here are some of the most common types of food truck financing:
Equipment financing
Equipment loans are designed specifically for the purchase of business machinery and equipment. You can use equipment financing to buy a food truck, as well as refrigerators, sinks, cooktops and other kitchen equipment.
With an equipment loan, the machinery that you’re purchasing serves as collateral. This built-in physical collateral
SBA loans
These SBA loans are available in amounts up to $5 million ($5.5 million for eligible 504 loan projects) with repayment terms up to 10 years when used for equipment purchases. To qualify for an SBA loan, however, you’ll generally need good credit, strong finances and multiple years in business.
Business term loans
A business term loan
If you’re looking to buy a food truck, a dedicated equipment loan may be a better option. General term loans, however, can be a good option for financing inventory and supplies purchases, business improvements and day-to-day operations, among other uses.
Business line of credit
A business line of credit
Credit lines are best suited for the ongoing working capital needs of your food truck. They can also be good to have on hand in case of emergency expenses.
Microloans
Microlenders typically have flexible eligibility requirements and may be willing to work with startups or borrowers with bad credit. These loans can be a good option if you can’t qualify for more traditional financing, as long as your funding needs don’t exceed $50,000.
How to get a loan for a food truck
If you’re looking for a loan to purchase a food truck — or generally fund your business — here are some tips to help you find the right financing for your needs.
1. E valuate your funding needs
Determine how much business capital
» MORE: How to finance used equipment
2. Review your qualifications
Most lenders will consider your personal credit score, time in business and annual revenue when underwriting a loan application. Reviewing these business loan requirements
If you’re financing a food truck, you'll want to determine how much you can afford to put down. Although not all lenders require a down payment on a business loan
3. Find a vendor and get a quote
When financing a food truck, you’ll typically need to provide an equipment quote as part of your application. You should reach out to different vendors to get a quote for the type of truck you want. This will also allow you to compare vendors to see where you can get the best price.
🤓
Some food truck vendors work with financing partners to help you get a loan or lease for a truck. Legion Food Trucks, based in California, for example, partners with Ford Financial. Because these lenders are familiar with the food truck industry and the vendor, they may offer flexible qualification requirements and expedited applications, among other possible benefits. Nerdy Tip
4. Compare food truck loan options
As you research and compare options, consider factors such as available loan amounts, repayment terms, interest rates, funding speed, application process and lender reputation.
» MORE: Equipment loan calculator
5. Prepare and submit your application
Organizing your paperwork ahead of time can help expedite the business loan application
When completing your application, you’ll want to make sure that you provide accurate and up-to-date documentation and answer every question as intended. This will reduce any back-and-forth between you and the lender, allowing you to get approved quicker.
Frequently asked questions
Where can you finance a food truck?
How long can you finance a food truck?
Can you get food truck financing with no credit check?
Last updated on May 22, 2024
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Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
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