Securing food truck financing means finding a lender that can work with both your titled vehicle as well as any equipment you may need. It may also mean finding a lender that provides working capital for needs beyond equipment. We evaluated over 30 leading equipment financing lenders, choosing six top food truck lenders.
Top 6 Food Truck Lenders 2019
Company | Best For |
|---|---|
(Best Overall) Well-qualified borrowers who need to lease a vehicle and equipment | |
Newer businesses that need to purchase a food truck | |
Businesses looking for flexible short-term loans | |
Huntington Bank | Businesses with great credit and 2+ years operations that need working capital |
Businesses with poor credit that need access to short-term funding | |
Startups with no business history that need flexible funding |
Who Food Truck Financing Is Right For
Food truck costs can vary significantly, based on the type of vehicle and its age and condition. Not all business owners have the cash on hand to buy outright. Businesses that can afford it may still wish to consider financing their food truck purchase, keeping cash on hand for equipment, inventory, marketing, and other working capital.
Business owners just starting out may seek financing for the purchase of a truck as well as needed equipment and upgrades. Existing food truck entrepreneurs may wish to expand their mobile culinary empire, and are looking for the right financing options. Restaurants seeking to expand their client base with this low cost way to extend their menu to the street may be considering working with a food truck lender.
How We Evaluated Food Truck Financing Companies
There are many ways to finance your food truck. After compiling data on over 30 different lenders who offer food truck financing, we chose the six top food truck lenders based on a combination of criteria, including borrowing costs, funding speed, ease of applying, and what other customers have said about their experience.
Based on the needs of small business owners, the criteria we used to choose the top food truck lenders include:
- Overall Costs: How much does it cost to borrow from each lender? Lenders with lower overall costs in their segments received a more favorable evaluation.
- Speed of funding: How quickly can lenders fund your business? Lenders with longer funding windows compared to similar programs were excluded.
- Amount of funding: What is the range of funding available to food truck borrowers?
- Application process: What is the application process for each lender? Does the lender require significant documentation? Is their process user friendly and transparent?
- Qualification requirements: What are the minimum qualifications for each lender based on their segment? Lenders with very high minimum qualifications were not considered.
- Repayment terms: What are the repayment terms and schedules available from each lender? Lenders with more flexible terms were given additional weight.
- Online reputation: What is the online reputation for each lender? What did users find positive about their experience? What stood out as negative?
- Customer service: How quickly can you get help if you need it? How professional is the experience?
Deciding which company is the best in such a specialized niche can be difficult. Instead of focusing on one type of lending, we instead evaluated the myriad different options available to borrowers, and chose the best lenders in the space based on several different scenarios.
Crest Capital ranks at the top for its cost effective options and wide range of repayment and food truck financing options as well as its impeccable online reputation. To apply for an equipment loan or lease with Crest Capital, borrowers can fill out an application online for same day approvals and application only leases up to $250,000.
Crest Capital Equipment Lease: Best Overall Food Truck Financing Company for Small Businesses
Crest Capital is a leading equipment leasing provider with flexible terms that can cover your food truck financing needs. There is 100% financing available up to $500,000 on a wide range of programs for both new and used equipment. With over 30 years of experience in equipment leasing, Crest Capital also combines two unique leasing asset types, titled vehicles and equipment, under one roof.
Crest Capital Types of Financing Available
The types of financing offered by Crest Capital are:
- Equipment leasing: Great for keeping payments low and frequent upgrades.
- Equipment loans: Excellent option if you want to keep the equipment.
- Vehicle financing: Great for titled vehicle needs like a food truck.
- Software financing: Includes software as well as soft costs such as installation and support.
Crest Capital specializes in equipment financing, including vehicles and software. We will be highlighting their equipment leasing program, which is flexible, offers application-only financing, and is well reviewed. Crest Capital will finance “soft costs” up to 25% of the borrowed amount.
Crest Capital Equipment Leasing Rates and Fees
Rates and fees for an equipment lease with Crest Capital are:
- Interest rate: 5.5% to 9.5%
- Prepayment penalty: No
- Additional fees: $275 administrative fee
Equipment leasing costs with Crest Capital will vary. Interest rates start at 5% for very well qualified borrowers. Equipment leases are a contract for a certain number of payments over a certain period of time, so paying an equipment lease off early typically will not save your business any money. Crest Capital charges an administrative fee of $275 on its equipment leases.
Crest Capital Equipment Leasing Terms
Equipment leasing terms from Crest Capital are:
- Lease range: $5,000 – $500,000 (up to $250,000 application only)
- Payment terms: Two to six years
- Payment schedule: Monthly, step-up, seasonal, and deferred
- Collateral: No additional collateral required
- Personal guarantee: Yes
- Speed of funding: Same or next day
Crest Capital requires a personal guarantee for an equipment lease, however no additional collateral is required. It offers a wide variety of lease types, including $1 purchase agreements and 10% purchase options. It has many flexible payment terms. In addition to the standard monthly option, it offers step-up, deferred and seasonal payment plans, which are tailored to meet your individual business’ ability to pay.
Crest Capital Equipment Leasing Qualifications
Qualifications for an equipment lease from Crest Capital are:
- Credit score: 650 (check your score for free)
- Time in business: Two years
- Annual revenue: No minimum.
- Vehicle condition: New or used
- Startups eligible: No
Crest Capital works with companies that have been in business at least two years, and do not have a minimum requirement for annual revenues. It requires a minimum personal credit score of 650. Crest Capital will finance most types of equipment, and will finance both new and used food trucks.
What Crest Capital is Missing
Crest Capital has a variety of different equipment leasing programs, and very flexible repayment options. However, Crest Capital is limited in the sense that it will not work with credit under 650 and startups. National Funding provides equipment leasing and will work with newer companies with only six months in business as well as lower credit (620+), making it a great option for those that don’t meet Crest Capital’s qualifications.
Crest Capital Reviews
Crest Capital tops our list of food truck financing providers based on the variety of equipment leasing options it offers, its low leasing interest rates, and its stellar online reputation. With an aggregate review average of 4+ stars, positive reviewers noted its flexibility, honesty, and transparency in the application and approval process. While few negative reviews exist, one from a year ago noted poor communication following an inquiry.
How to Apply with Crest Capital
To apply for a food truck equipment lease with Crest Capital, you can apply online, send an application via email, or print and fax an application. For financing up to $250,000 you can receive same day approval with no further documentation necessary.
National Funding: Best Food Truck Financing Company for New Businesses
National Funding makes the cut based on the variety of flexible funding programs it offers, its lower overall credit requirements, and that it will work with companies with only six months in business and a minimum credit score of 620. National Funding offers quick decisions and equipment leases for food trucks up to $150,000.
National Funding Types of Financing Available
The types of financing offered by National Funding are:
- Equipment leasing: Great for keeping payments low and frequent upgrades
- Business term loans: Excellent option for working capital and inventory purchases
- Merchant cash advance: A last resort option for credit challenged borrowers for emergency financing
National Funding offers several different funding options for food truck entrepreneurs, including small business loans and merchant cash advances. We will focus on National Funding’s equipment leasing program, which allows borrowers to access up to $150,000 with a minimum credit score of 620.
National Funding Rates and Fees
Rates and fees for an equipment lease with National Funding are:
- Interest rate: 8% to 19%
- Prepayment penalty: No
- Additional fees: Unknown
Like many equipment leasing alternative lenders, National Funding does not list its interest rates online, and finding further information on its rate and fee structure is difficult at best. As is typical with equipment leasing companies, paying off an equipment lease early with National Funding will result in paying off the total agreed upon, as an equipment lease is essentially a contract to make a certain number of payments for a total agreed upon dollar amount.
National Funding Terms
Equipment leasing terms from National Funding are:
- Lease range: $15,000 to $150,000
- Payment term: Three to five years
- Payment schedule: Monthly, seasonal, and deferred
- Collateral: No additional collateral required
- Personal guarantee: Yes
- Speed of funding: Same or next day
National Funding offers equipment leases between $15,000 and $150,000 and term lengths between three and five years. As with many equipment leasing companies, National Funding offers flexible repayment options, including monthly, seasonal and skip-payment options. Additional collateral for equipment leases is not required, however a UCC lien is, which gives it access to your assets should you default.
National Funding Qualifications
Qualifications for an equipment lease from National Funding are:
- Credit score: 620 (check your score for free)
- Time in business: Six months
- Annual revenue: No minimum
- Vehicle condition: New and used
- Startups eligible: No
National Funding offers leasing for food trucks businesses with lower than average credit scores, offering financing with a minimum 620 credit score. National Funding will finance most types of equipment, including both new and used food trucks. Businesses that have been in existence for only six months can apply for food truck financing with National Funding but should expect to see a higher interest rates.
What National Funding is Missing
National funding offers very flexible lease options to businesses that don’t have extension financial history, as well as lower credit scores. However, National Funding doesn’t offer equipment leasing over $150,000 and will not finance working capital making it a limited option.
National Funding Reviews
Reviews for National Funding are mixed. However, among lenders that offer similarly flexible minimum qualifications and financing products, it compares favorably. Positive reviews of National Funding reference its quick funding, efficiency and its easy and affordable repayment options. Negative reviews largely reference aggressive sales and marketing tactics, and many of the negative reviews focus on the cost of its merchant cash advances.
How to Apply with National Funding
You can start the application process with National Funding online, or by calling a loan specialist. You may email an application, or print and fax the application to them. Same day approval on applications is available on food truck loans up to $150,000.
LoanBuilder: Best Food Truck Financing Company for Short-term Loans
LoanBuilder, now a subsidiary of PayPal, offers quick, flexible short-term business loans. LoanBuilder is different in that instead of emphasizing interest rates, it allows business owners to build a loan that works best for them in terms of repayment terms and payment amount. It made the cut because it offers a unique option for food truck owners with less than perfect credit the ability to expand their business with a short-term loan.
LoanBuilder Types of Financing Available
The types of financing offered by LoanBuilder are:
- Short-term business loans: Excellent option for borrowers that need access to quick cash to bridge a cash flow gap.
LoanBuilder offers short-term business loans, which are unsecured loans that can be used for most general business expenses, including purchasing a food truck.
LoanBuilder Rates and Fees
Rates and fees for a short business loan with LoanBuilder are:
- Fee to borrow: 2.9% to 18.72%
- Prepayment penalty: N/A
- Additional fees: $20 returned payment fee
Instead of offering financing with a corresponding interest rate, LoanBuilder instead charges a one-time borrowing fee, or “total interest percentage,” between 2.9% – 18.72%. This fee is charged once, up front, and then the borrower makes corresponding payments over time until the loan is paid off. There is a $20 fee for returned payments. There is no advantage to paying off a loan early.
LoanBuilder Terms
Short term business loan terms from LoanBuilder are:
- Loan amount: $5,000 to $500,000
- Repayment term: 13 – 52 weeks
- Repayment schedule: weekly
- Collateral: No
- Personal guarantee: Yes
- Speed of funding: As soon as next day
LoanBuilder short-term business loans are repayable weekly, and may be repaid over 13 to 52 weeks. Payments are automatically deducted. Loans are “built” based on the amount you wish to pay back and the length of time you want to make payments. No collateral is required, however a UCC lien is filed. It also requires a personal guarantee for all loans.
LoanBuilder Qualifications
Qualifications for a short-term loan from LoanBuilder are:
- Credit score: 550 (check your score for free)
- Time in business: Nine months
- Annual revenue: $42,000+
- Vehicle condition: Any
- Startups eligible: No
LoanBuilder offers financing to companies with over nine months in business and at least $42,000 in revenues, and require a personal credit score of at least 550. Since LoanBuilder offers unsecured short-term loans, the vehicle condition is not a factor, and the loan can be used for expansion, new equipment, and most other business needs.
What LoanBuilder is Missing
Loan builder is an intuitive way to find short-term loans that meet your food truck financing needs. However, it is very limited in terms of length of repayment, with length topping out at 52 weeks. Repayments are due on the same day every week (you choose the date) and there is no flexibility, even if you’ve made more than the required payment recently.
LoanBuilder Reviews
In general reviews for LoanBuilder, formerly Swift Financial, are positive and the company enjoys a solid online reputation. Positive interactions noted LoanBuilder’s fast, simple, hassle-free process as well as positive experiences with LoanBuilder’s loan advisers. Recent negative reviews remark on industries which are excluded from financing as well as difficulty in reaching a supervisor if something goes wrong.
How to Apply with LoanBuilder
LoanBuilder’s application process is simple, and starts with completing its online questionnaire, or you can call and complete the questionnaire over the phone with one of its business funding experts. From there, one call approvals are available for amounts up to $500,000 with a minimum credit score of 550.
Huntington Bank: Best Food Truck Financing Company for Working Capital
If you are starting your own food truck business, you’ll likely need additional capital after you’ve bought the truck and equipment. An SBA loan can be a great fit. Huntington Bank makes the cut by providing a straightforward SBA loan application process, and being among the top three SBA food truck lenders since 2010.
Types of Financing Available
The types of financing offered by Huntington Bank are:
- SBA loans: Ideal for well qualified borrowers who need working capital, and are able to wait 60-180 days for funding.
- Business term loans: Great for borrowers who need access to working capital, and need funding quickly.
- Business line of credit: Excellent option for businesses with seasonal needs that can quickly pay down the balance.
Huntington Bank offers a range of different financing options for businesses, however we chose to feature Huntington’s SBA loans because it gives food truck entrepreneurs access to working capital to get their business off the ground.
Huntington Bank Rates and Fees
Rates and fees for an SBA loan with Huntington Bank are:
- Interest rate: 7.75% to 10.25%
- Prepayment penalty: Yes*
- Additional fees: Packaging fee may apply
Huntington Bank’s SBA 7(a) loan interest rates will follow the predetermined range for such rates based on Prime plus a markup between 2.25% to 4.75%, currently at 7.75% to 10.25%. A prepayment penalty is applied on loans terms equal to or greater than 15 years. Additional fees, including a bank packaging fee, will generally apply to all SBA loans.
Huntington Bank SBA 7(a) Loan Terms
SBA loan terms from Huntington Bank are:
- Loan amount: Up to $5 million
- Repayment term: Up to 25 years (seven years for working capital, 10 years for equipment)
- Repayment schedule: Monthly
- Collateral: Loan must be fully collateralized to available extent
- Personal guarantee: Yes
- Speed of funding: 60-90 days
Huntington Bank’s average SBA loan amount for FY 2018 was $178,539 while food trucks were an average of $37,715. Repayment terms up to 25 years are available on real estate secured loans, however typical loan terms for working capital are seven years, and up to 10 years for equipment.
SBA guidelines require that loans are collateralized up to the extent possible by the bank, so expect to have the bank take a lien on your house if you own one, or require some other form of collateral. A personal guarantee is also required. SBA loans average between 60-90 days from application to funding, so they are not for those who require a speedy option.
Huntington Bank SBA 7(a) Loan Qualifications
Qualifications for an SBA loan from Huntington Bank are:
- Credit score: 680 (check your score for free)
- Time in business: Two years
- Annual revenue: Based on loan amount and business DSCR
- Vehicle condition: N/A
- Startups eligible: Yes
A minimum credit score of 680 is generally required for an SBA (7)a loan, which can be assisted by bringing on a strong co-signer, additional collateral, or a higher equity injection. Expansions require two years in business, while your credit score and equity injection will be critical for startups.
What Huntington Bank is Missing
Huntington Bank is a leading SBA lender, and even better, one of the top originators of SBA loans for food trucks, however the speed to funding may be a deal killer for some at 60-90 days. Additionally, credit requirements are stricter for SBA loans and documentation is required. If the timing and requirements seem daunting you might consider a peer to peer (P2P) loan from OnDeck.
Huntington Bank Reviews
Overall, Huntington Bank’s reviews are mixed, which is to be expected of a bank that offers such a wide range of consumer and business banking products. Generally, positive reviews of Huntington Bank reference its smooth application process and well-built website, while negative reviews commonly reference sub-par customer service.
How to Apply with Huntington Bank
Applying to Huntington Bank for an SBA loan starts by reaching out to an SBA Specialist. From there you’ll fill out an SBA application. There is not currently an online application process for an SBA loan from Huntington Bank. After working with your SBA Specialist, you’ll be on your way to borrowing up to $5 million for your business.
OnDeck: Best Food Truck Financing Company for Poor Credit
OnDeck stands out in the crowd for its generally relaxed credit requirements. If you have been in business for at least one year and have at least $100,000 in annual revenues, you can get approved with OnDeck with a credit score starting at 600, making OnDeck a great option if you’ve got less than perfect credit.
Types of Financing Available
The types of financing offered by OnDeck are:
- Term loans: Great for borrowers who need quick access to funds for purchasing a food truck, plus equipment and working capital.
- Line of credit: Excellent for borrowers who need flexible access to unsecured funding to purchase equipment of bridge seasonal gaps.
OnDeck offers both business term loans and lines of credit. Its line of credit is an interesting option for borrowers that need equipment or are expanding their business, as it offers the option to draw up to $100,000 at any time, and then pay that amount back over six months, which can be a convenient way to cover many separate purchases.
OnDeck Line of Credit Rates and Fees
Rates and fees for a line of credit with OnDeck are:
- Interest rate: 13.99% – 57.90%
- Prepayment penalty: No
- Additional fees: $20 monthly maintenance fee
OnDeck’s line of credit has an interest rate, based on your credit risk, between 11% and 57.90%. There is no penalty for paying your draw off early, and the sooner you pay it off, the less interest you will have accrued. There is a $20 monthly maintenance fee associated with the line of credit, however drawing $5,000 or more within the first five days of opening your account will waive your maintenance fee for six months.
OnDeck Line of Credit Terms
Line of credit terms from OnDeck are:
- Line of credit amount: $6,000 to $100,000
- Repayment term: Six or 12 month repayment term
- Repayment schedule: monthly
- Collateral: No
- Personal guarantee: Yes
- Speed of funding: Same or next day
With an OnDeck line of credit, lines are available between $6,000 and $100,000. Each draw has a repayment term of six or 12 months, and payments are made on a monthly schedule. Since it is a line of credit, there is no specific collateral, however a personal guarantee is required. According to OnDeck’s website, funding is available within as few as 24 hours.
OnDeck Line of Credit Qualifications
Qualifications for a line of credit from OnDeck are:
- Credit score: 600 (check your score for free)
- Time in business: 12 months
- Annual revenue: $100,000
- Vehicle condition: N/A
- Startups eligible: Yes
As we’ve mentioned, a core advantage of OnDeck is its relatively lenient credit score requirements with approvals starting at a 600 credit score. On top of this, OnDeck will work with your business if you have more than 12 months in business, and $100,000 or more in gross annual revenue.
What OnDeck’s Line of Credit is Missing
OnDeck brings very flexible credit guidelines as well as fast funding to the table, and for businesses that qualify, it can be a great option. You won’t make the cut, however, without at least one year in business. For true startup businesses that cannot qualify, but still need quick, flexible funding, LightStream can be a great option.
OnDeck Reviews
In general, OnDeck reviews are mostly positive, averaging 4+ stars across reviewing websites. Positive reviews tend to reference fast, friendly service, and an easy application process. Negative reviews point to a lack of transparency in lending terms, with one user complaining that when they paid off their loan early, they were surprised by a high payoff amount.
How to Apply with OnDeck
Applying with OnDeck is easy, with OnDeck’s own estimate that the median customer can complete its online application in only 7.2 minutes. Head over to its online application center to fill out its application and borrow up to $100,000 with a minimum FICO of 600.
LightStream: Best Food Truck Financing Company for Startups
Let’s face it, getting lending as a startup is tough. Most lenders require at least two years in business, and more aggressive lenders don’t like to go below six months. So, what do you do if you’re a true startup? LightStream is one competitive option. Technically a personal loan, it stands out due to the flexible lending options, and long terms making it a great fit for a first time business owner.
LightStream Types of Financing Available
The types of financing offered by Lightstream are:
- Unsecured loan: Excellent options for new businesses that cannot qualify for business funding. Can be used for vehicle, equipment, and working capital.
Lightstream, a division of SunTrust Bank, offers a wide range of funding options. We will focus on their unsecured loan option as they do not offer a specific loan for businesses.
LightStream Unsecured Loan Rates and Fees
Rates and fees for an unsecured personal loan with LightStream are:
- Interest rate: 4.49% to 17.49%
- Prepayment penalty: None
- Additional fees: None
LightStream’s unsecured loan has APRs starting at 4.49% and going to 17.49%, with a 0.5% rate discount if you use its autopay, adjusting rates to 3.99% to 16.99%. It has a very simple fee structure and does not charge any origination fees or a prepayment penalty should you pay your loan off early.
LightStream Unsecured Loan Terms
Unsecured personal loan terms from LightStream are:
- Loan amount: $5,000 to $100,000
- Repayment term: Two to 12 years
- Repayment schedule: Monthly
- Collateral: No
- Personal guarantee: Yes
- Speed of funding: Same or next day funding
LightStream offers wide funding range, from $5,000 to $100,000, with flexible repayment terms between two and 12 years, making it easy to keep payments at an affordable level. Since it is an unsecured loan, there is no collateral requirement, however a personal guarantee is required as it is a personal loan. Funding is available within one business day of applying.
LightStream Unsecured Loan Qualifications
Qualifications for an unsecured personal loan from LightStream are:
- Credit score: 660 (check your score for free)
- Time in business: N/A
- Annual revenue: N/A
- Vehicle condition: N/A
- Startups eligible: Yes
Minimum qualifications for LightStream are simple. If you have a credit score of at least 660, you may qualify for a loan. Other factors such as payment history, income, and job history will be taken into account. Again, as this is a personal loan, there is no time in business qualification, making this a good fit for startups with no business history.
What LightStream is Missing
LightStream offers flexible terms and competitive interest rates on unsecured loans, however it does not currently offer a credit option specifically for businesses, so you will not receive the benefits of credit reporting for your business, making it difficult to obtain business credit in the future. You may want to consider another option for funding your startup business such as a business credit card.
LightStream Reviews
Overall, reviews for LightStream personal loan products are favorable. Reviewers who had a positive experience with LightStream generally reference an easy, quick process and friendly customer service. Negative reviewers note that even with good credit, loan approvals may be difficult to obtain, even with a pre-approved offer.
How to Apply with LightStream
To apply for a personal unsecured loan with LightStream, applications may be submitted online for same day approvals for loans ranging between $5,000 and $100,000 and terms between two and 12 years.
Bottom Line
Which route you take to finance your food truck will ultimately come down to how much you need, how long you’ve been in business, your credit, and how quickly you need funding. From startups to established businesses with poor credit, there are options to fit nearly every financing scenario.
For food truck equipment leasing, Crest Capital has a variety of creative repayment options rates between 5.5% and 9.5% for businesses with at least two years financials. With application only leasing up to $250,000, Crest Capital can finance your food truck in as little as one day.
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