Senior Writer & Content Strategist | Small business, business banking, business loans
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Small business
Business lending
Business banking
Randa Kriss is a senior writer and NerdWallet authority on small business. She has nearly a decade of experience in digital content. Prior to joining NerdWallet in 2020, Randa worked as a writer at Fundera, covering a wide variety of small-business topics and specializing in the lending and banking spaces. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona University (formerly Iona College).
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
NerdWallet's content is fact-checked for accuracy, timeliness, and relevance by humans. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible. Learn more by checking our Editorial Guidelines.
Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
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However, these factors do not influence our editors’ opinions or ratings, which are based on independent research and analysis. Our partners cannot pay us to guarantee favorable reviews. Here is a list of our partners.
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
NerdWallet's content is fact-checked for accuracy, timeliness, and relevance by humans. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible. Learn more by checking our Editorial Guidelines.
Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Advertiser disclosure
You're our first priority.
Every time.
We believe everyone should be able to make financial decisions with confidence. While we don’t cover every company or financial product on the market, we work hard to share a wide range of offers and objective editorial perspectives.
So how do we make money? Our partners compensate us for advertisements that appear on our site or when you click to or take an action on their website. This compensation helps us provide tools and services - like free credit score access and monitoring. With the exception of mortgage, home equity and other home-lending products or services, partner compensation is one of several factors that may affect which products we highlight and where they appear on our site. Other factors include your credit profile, product availability and proprietary website methodologies.
However, these factors do not influence our editors’ opinions or ratings, which are based on independent research and analysis. Our partners cannot pay us to guarantee favorable reviews. Here is a list of our partners.
Select your business type to get personalized loan recommendations:
Food truck financing can be used to purchase a new or used food truck for your business. Some of these small-business loans may also be used to buy other types of equipment, make business improvements, purchase inventory or cover working capital needs.
You can get food truck financing from several different sources, including banks, SBA lenders and online lenders. In general, the best food truck loan will be the most affordable option you can qualify for that meets your needs.
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
50+ categories of the best business loan selections.
NerdWallet's small-business loans content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business lending. Their work has appeared in The Associated Press, The Washington Post, MarketWatch, Nasdaq, Entrepreneur, ABC News, MSN and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
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.
If you’re looking for an equipment loan from a big bank, Bank of America may be a good option. The lender offers equipment loans starting at $25,000 with no set limit and loan terms of up to five years when secured by business assets. Bank of America’s Preferred Rewards for Business customers may also be able to access discounted rates.
Offers loans to startups and borrowers with bad fair 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.
Can't be used to build business credit.
Charges an origination fee.
National Funding stands out as an online equipment financing option for startups and borrowers with bad credit — provided they have strong revenue. This lender offers equipment loans or leases for new and used equipment, and unlike some equipment lenders, doesn’t require a down payment. Funding can be available in as little as 24 hours.
Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
Cons
$375 origination fee required for expedited application (if you’re not an existing customer).
Expedited application only available on deals up to $200,000.
Interest rates and qualification requirements not disclosed online.
U.S. Bank stands out for its flexible equipment financing program. With this program, you can finance up to 125% of your equipment purchase, including soft costs such as installation, taxes and freight. U.S. Bank offers several repayment options and allows you to finance multiple pieces of equipment on one contract. Unlike some bank lenders, U.S. Bank doesn’t require a down payment on its equipment financing and doesn’t take out a UCC lien on your business assets.
SBA 7(a) loans stand out as an affordable option for businesses that can’t qualify for bank financing, but still have good credit and finances. 7(a) loans offer low interest rates, long repayment terms and large funding amounts. These loans can also be used for a variety of purposes, including working capital, business expansions or purchasing equipment and supplies.
For-profit U.S. business.
Unable to access credit on reasonable terms from nongovernment sources.
Financial qualifications determined by individual lender.
Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
Charges an origination fee.
Requires higher annual revenue than other online lenders.
Triton Capital stands out as an online equipment lender for borrowers with lower credit scores. Triton Capital can finance new or used equipment in a variety of industries. The lender offers competitive interest rates, long repayment terms and flexible payment options. You may be able to get approved and receive funding in as fast as one business day.
ELease can be a good option for businesses that don’t qualify for more traditional forms of equipment financing. It has flexible qualification requirements and can work with startups and borrowers with bad credit. The company offers competitive interest rates and repayment terms. Unlike other specialized equipment lenders, however, eLease requires you to apply over the phone.
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.
Headway Capital offers a fast and flexible business line of credit that’s a good option for those who can’t qualify for traditional financing. The lender can work with startups and businesses with low revenue. Headway can fund applications as fast as the next day after approval. Unlike some online lines of credit, however, you’ll likely have to pay a draw fee to access your funds from Headway.
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.
If you’re looking for an equipment loan from a big bank, Bank of America may be a good option. The lender offers equipment loans starting at $25,000 with no set limit and loan terms of up to five years when secured by business assets. Bank of America’s Preferred Rewards for Business customers may also be able to access discounted rates.
Offers loans to startups and borrowers with bad fair 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.
Can't be used to build business credit.
Charges an origination fee.
National Funding stands out as an online equipment financing option for startups and borrowers with bad credit — provided they have strong revenue. This lender offers equipment loans or leases for new and used equipment, and unlike some equipment lenders, doesn’t require a down payment. Funding can be available in as little as 24 hours.
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.
Offers up to 25% in additional financing to cover soft costs, such as installation, taxes and freight.
Cons
$375 origination fee required for expedited application (if you’re not an existing customer).
Expedited application only available on deals up to $200,000.
Interest rates and qualification requirements not disclosed online.
U.S. Bank stands out for its flexible equipment financing program. With this program, you can finance up to 125% of your equipment purchase, including soft costs such as installation, taxes and freight. U.S. Bank offers several repayment options and allows you to finance multiple pieces of equipment on one contract. Unlike some bank lenders, U.S. Bank doesn’t require a down payment on its equipment financing and doesn’t take out a UCC lien on your business assets.
Minimum credit score: Undisclosed.
Minimum time in business: Two years.
Minimum annual revenue: Undisclosed.
U.S. Small Business Administration: Best for large loan amounts
SBA 7(a) loans are available in amounts up to $5 million. These loans can be used to buy a food truck, purchase or upgrade other equipment and cover working capital needs.
SBA 7(a) loans stand out as an affordable option for businesses that can’t qualify for bank financing, but still have good credit and finances. 7(a) loans offer low interest rates, long repayment terms and large funding amounts. These loans can also be used for a variety of purposes, including working capital, business expansions or purchasing equipment and supplies.
For-profit U.S. business.
Unable to access credit on reasonable terms from nongovernment sources.
Financial qualifications determined by individual lender.
You can use financing from Triton Capital to purchase a new or used food truck, as well as other equipment for your business. Funding is available in as little as one to two days.
Flexible repayment options: monthly, quarterly, annually or semiannually.
Cons
Charges an origination fee.
Requires higher annual revenue than other online lenders.
Triton Capital stands out as an online equipment lender for borrowers with lower credit scores. Triton Capital can finance new or used equipment in a variety of industries. The lender offers competitive interest rates, long repayment terms and flexible payment options. You may be able to get approved and receive funding in as fast as one business day.
ELease can be a good option for businesses that don’t qualify for more traditional forms of equipment financing. It has flexible qualification requirements and can work with startups and borrowers with bad credit. The company offers competitive interest rates and repayment terms. Unlike other specialized equipment lenders, however, eLease requires you to apply over the phone.
Minimum credit score: 550.
Minimum time in business: 6 months.
Minimum annual revenue: No minimum requirement.
Headway Capital: Best for working capital needs
You can use Headway Capital’s business line of credit to fund the ongoing expenses associated with running a food truck.
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.
Headway Capital offers a fast and flexible business line of credit that’s a good option for those who can’t qualify for traditional financing. The lender can work with startups and businesses with low revenue. Headway can fund applications as fast as the next day after approval. Unlike some online lines of credit, however, you’ll likely have to pay a draw fee to access your funds from Headway.
Food truck loans are usually structured like other forms of equipment financing, in which the vehicle you purchase serves as collateral on the loan.
Loan amounts. Up to 100% of the value of the truck you’re looking to purchase or renovate.
Repayment terms. One to 10 years, based on the projected useful life of the truck.
Interest rates. 5% to 36% APR, depending on the lender, value of the truck, your down payment and qualifications.
Types of food truck financing
Several types of business loans can be used to finance a food truck. Here are some of the most common options:
Equipment financing
Best for: Financing a truck or equipment with potentially lower rates and easier approval.
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 reduces the risk for lenders — and as a result — they may be more flexible with qualification requirements.
Best for: Established businesses with good credit seeking large loan amounts and long repayment terms.
SBA loans are partially guaranteed by the U.S. Small Business Administration and issued by participating lenders, like banks and credit unions. Both SBA 7(a) and 504 loans can be used for food truck financing.
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
Best for: One-time expenses, like inventory, truck upgrades or expansion costs.
A business term loan is a lump sum of capital that you borrow from a lender and repay, over a specific period, with interest. Business term loans are available from traditional and online lenders. Maximum loan amounts, repayment terms and interest rates vary largely based on the lender and your business’s qualifications.
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
Best for: Ongoing working capital and covering short-term or unexpected expenses.
A business line of credit allows you to borrow from a set amount of funds and pay interest only on the funds you draw. Once you’ve repaid what you’ve borrowed, you can continue to draw on the credit line. Like term loans, business lines of credit are available from traditional and online lenders — and rates and terms vary.
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
Best for: Startups or underserved businesses needing smaller loan amounts.
Microloans are small loans — usually up to $50,000 — that are issued by nonprofits and community organizations. These lenders often focus their financing efforts on traditionally underserved businesses, such as women-owned businesses, minority-owned businesses and more.
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 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.
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.
How to get financing 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. Evaluate your funding needs
Determine how much capital you need and how you’re going to use it. If you plan to buy a food truck, consider if it should be a new or used truck. If you opt for a used truck, consider any additional equipment you’ll need to buy or renovations you’ll need to make.
Most lenders will consider your personal credit score, time in business and annual revenue when underwriting a loan application. Reviewing these business loan requirements ahead of time will give you a sense of where you stand before applying.
To qualify for food truck financing, you’ll typically need:
Personal credit score: 600+.
Time in business: Six months or more.
Annual revenue: $100,000+.
If you’re financing a food truck, determine how much you can afford to put down. Some lenders require a down payment of 10% to 20% of the total loan or project cost. Even when it’s not required, providing a down payment can help you qualify for more competitive rates and terms.
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. 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.
🤓
Nerdy Tip
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.
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.
5.Prepare and submit your application
Organizing your paperwork ahead of time can help expedite the business loan application process. Most lenders require basic information about you and your business, bank statements, tax returns and business financial statements.
When completing your application, 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
You can finance a food truck through several different sources, including banks, SBA lenders and online lenders. You may also be able to get financing through food truck vendors. These vendors often work directly with lending partners to provide financing.
Repayment terms for food truck financing can range between one and 10 years, depending on the type of truck, your lender and your business’s qualifications. In general, a lender won’t offer terms that exceed the projected useful life of the truck.
A typical down payment on a food truck is 10% to 20% of the total loan amount or project cost. Not all lenders require a down payment, but providing one can help you access better rates and terms.
It’s unlikely that you’ll find food truck financing that doesn’t require a credit check. Some lenders, however, will perform a soft pull of your credit history, which doesn’t impact your credit score.
If you have bad or thin credit, you may still be able to qualify for food truck financing. Because the food truck serves as collateral on the loan, lenders may be more flexible with their credit score requirements.
Getting a business loan can be challenging, and several factors — cost, speed, repayment schedule — can play a role in deciding which product is right for you. Let us help you through the process.
Answer a 3-minute questionnaire about your business to get personalized lending options. It’s free and won’t impact your credit score.
See your business loan options
Compare interest rates and repayment terms to choose the best product for your needs.
Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.
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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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