How to Finance a Food Truck and Get Your Business Rolling

Starting a food truck is an exciting way to turn your passion for food into a thriving business. Whether you dream of serving up gourmet burgers, authentic tacos, or artisanal coffee, getting the right truck is the first big step. But like any business, it takes more than a great idea and a solid menu. You need funding to buy and fit out your truck, secure permits, and keep things running in those early months.

If you’re wondering how to finance a food truck, here’s everything you need to know, including the best ways to secure funding and set your business up for success.

The Costs of Setting Up a Food Truck

Before exploring finance options, it’s important to get a clear picture of what it actually costs to start a food truck. The truck itself is the biggest expense, but it’s far from the only one.

A brand-new, fully equipped food truck can cost anywhere from $80,000 to $200,000, while a second-hand truck that needs modifications might still set you back tens of thousands. Then there’s the cost of kitchen equipment, refrigeration, ventilation, and safety features, all essential for meeting food safety regulations.

Beyond the truck, you’ll need to budget for licences, permits, and insurance. Health department approvals, council permits, and business registrations all come with fees, and every food truck requires vehicle and liability insurance. You’ll also need to consider marketing and branding costs because let’s be honest, no one’s going to buy food from a plain white van with no signage.

Having a clear idea of these expenses will help you determine how much finance you need to get started, so don’t just pull a number out of thin air. Chat to other food truck owners in your area or even small cafes and restaurants to figure out what it cost them to get set up. Chances are, they’ll have suggestions for ways you can save a bit of money.

Most importantly though, make sure you factor a generous amount of wiggle room into your budget; you’d rather overestimate the costs and be covered, than underestimate and come up short when you need the money most.

Why Using Your Savings Might Not Be the Best Idea

It can be tempting to fund your food truck using personal savings, and many owners do, but setting up a new hospitality business can be a gamble at the best of times, and draining your savings is a great way to put unnecessary strain on your finances. Even if you have enough to buy the truck outright, you still need cash to cover running costs like ingredients, staff wages, and fuel, and hopefully pay yourself a salary, although this isn’t a given, especially early on.

Financing all or part of the cost allows you to keep your cash reserves available for everyday expenses. Many food trucks take time to become profitable, so holding onto some financial flexibility is a smart move.

The Best Ways to Finance a Food Truck

Truck Finance: The Most Flexible Option

For most food truck owners, dedicated truck finance is the best way to fund their vehicle purchase. At Credit One, we specialise in financing trucks and heavy vehicles, and can tailoring our finance to suit the specific needs of your business.

Truck finance works similarly to a car loan, where the vehicle itself is used as security. The main advantage of truck finance over other solutions is that the guarantee of security can lead to more competitive interest rates and more flexible repayment terms. You can finance not just the truck but also the fit-out, kitchen equipment, and even the initial running costs.

Business Finance for Extra Working Capital

Even with your truck financed, you may need additional funds to cover setup costs, permits, or marketing. This is where business finance comes in.

At Credit One, we can arrange fast and flexible business loans ranging from $5,000 to $500,000, helping you secure working capital for wages, stock, branding, or any other expenses. With a quick 48-hour turnaround, flexible repayment terms, and no financials required for applications under $150,000, it’s a great option for food truck owners looking to get started quickly and give themselves an additional cash buffer when their business is first getting off the ground.

Equipment Finance: Cover Your Kitchen Setup

Setting up a food truck requires more than a mini fridge and a couple of burners. Food trucks are mini, mobile commercial kitchens, and that means you’ll need to invest in high-quality equipment. From industrial fryers, cooktops and coffee machines to refrigeration units, prep stations and air conditioning, outfitting your truck with the right gear can be expensive.

With our equipment finance option, you can get the essential equipment you need without the burden of paying the large costs upfront. This allows you to spread out payments to fit your cash flow while keeping your business running smoothly. Low-doc and no-financials options are also available, making it easier to secure financing even if you’re just starting out.

Alternative Funding Options

If traditional financing isn’t the right fit, there are a few alternative ways to fund your food truck business. Some entrepreneurs turn to crowdfunding platforms like Kickstarter or GoFundMe to raise money while generating buzz before launching. Others seek investor funding, but this often requires giving up a share of your business in return. Additionally, unless you’re starting out with a proven concept (such as an existing restaurant) you’ll probably find it difficult to secure private investment for a food truck.

Some councils also offer small business grants, particularly for hospitality startups. However, grant funding is highly competitive and usually won’t cover all your costs, making it more of a supplement to your startup costs rather than a primary form of financing.

How to Get Approved for Food Truck Finance

Securing finance is easier when you’re well-prepared. Here are some steps to improve your chances of approval:

1. Have a Clear Business Plan

Lenders want to see that you’ve thought through your business model. A solid business plan should include financial projections, an operations plan, and a marketing strategy. Showing that you’ve done your research helps lenders feel confident in your ability to make repayments.

2. Check Your Credit Score

A strong credit history can help you secure lower interest rates. If your credit isn’t perfect, don’t worry—a finance broker can help you find the best options for your situation.

3. Gather the Right Paperwork

Most lenders will ask for proof of income, business registration, and details about the truck you’re buying. Having everything ready speeds up the approval process.

4. Work with a Finance Broker

Instead of applying to multiple lenders yourself, a finance broker can compare different loan options and negotiate on your behalf. At Credit One, we specialise in truck and business finance, making the process smooth and hassle-free.

Get Your Food Truck on the Road with the Right Finance from Credit One

Starting a food truck business is an exciting journey, but getting the right finance in place is key to your success. Whether you need a loan for your truck, kitchen equipment, or extra working capital, Credit One can help you find a tailored solution that fits your business.

With access to a broad range of lenders and finance options, including truck finance, business finance, and equipment finance, we take the stress out of financing so you can focus on what really matters: serving great food and growing your business.

If you’re planning on making a splash in your local food scene, use our truck loan calculator to find out just how affordable food truck loans can be. For more information, contact us today to speak with one our experienced and knowledgeable finance brokers!