Food trucks are a $1.4 billion industry growing at 6%+ annually. The barrier to entry is much lower than a traditional restaurant, but you still need $50,000-$200,000 to get rolling. Here's how to finance it.
Food Truck Costs
| Type | Price Range | Includes |
|---|---|---|
| Used truck, basic kitchen | $30,000-$60,000 | Basic cooking equipment, minimal customization |
| Used truck, full build-out | $50,000-$100,000 | Professional kitchen, generator, wrap |
| New custom build | $80,000-$150,000 | Purpose-built from chassis up |
| Premium custom build | $150,000-$250,000 | High-end kitchen, full branding, top equipment |
| Food trailer | $15,000-$60,000 | Towed unit, lower cost but less mobile |
| Coffee/beverage truck | $40,000-$90,000 | Espresso machine, refrigeration, water system |
Additional costs beyond the truck: permits ($500-$5,000), insurance ($2,000-$5,000/year), initial inventory ($2,000-$5,000), POS system ($500-$2,000).
Why Food Truck Financing Is Harder
Lenders view food trucks as higher risk than commercial trucks because:
- Restaurant failure rates: Food businesses have higher failure rates than trucking
- Customization: A custom food truck has limited resale value if repossessed (who else needs YOUR taco truck?)
- Seasonal revenue: Many food trucks have significant seasonal swings
- Limited collateral value: A $120,000 custom build might only be worth $40,000 to the next buyer
This means you'll typically need better credit, a larger down payment, or a strong business plan compared to standard truck financing.
Financing Options
Equipment loan (best rates): Traditional loan with the truck as collateral. Requires 650+ credit and 20-30% down for food trucks. Rates from 7.99%-15.99%.
SBA microloan: Up to $50,000 through SBA-approved intermediaries. Great for startups. Lower rates but slower process.
SBA 7(a): For larger builds. Can finance up to $5M. Requires detailed business plan and 2-3 week approval.
Rollover for Business Startups (ROBS): Use retirement funds to invest in your food truck without early withdrawal penalties. Complex but powerful for those with 401K/IRA funds.
Personal loan / HELOC: If your credit is strong, a personal loan or home equity line can fund a food truck at potentially lower rates than equipment financing.
Revenue Reality Check
| Scenario | Monthly Revenue | Monthly Expenses | Monthly Profit |
|---|---|---|---|
| Part-time (weekends, events) | $4,000-$8,000 | $2,000-$4,000 | $2,000-$4,000 |
| Full-time (5-6 days/week) | $12,000-$25,000 | $6,000-$14,000 | $6,000-$11,000 |
| Premium location/events | $20,000-$40,000 | $10,000-$20,000 | $10,000-$20,000 |
Top food trucks in major metro areas gross $500,000+/year. But the median is closer to $150,000-$250,000.
Tips for Getting Approved
- Write a business plan: Even a simple one showing your concept, market, and projected revenue
- Show food industry experience: Previous restaurant or food service work helps significantly
- Have a commissary lined up: Lenders want to know you have a licensed prep facility
- Get permits first: Shows you've done your homework
- Larger down payment: 25-30% dramatically improves your options
Apply for Food Truck Financing
Brobas Capital Partners finances food trucks, food trailers, and mobile food equipment. We know which lenders work with food businesses and which ones don't.
Apply at brobascap.com or call (773) 691-3925