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Can You Finance a Food Truck Business With Bad Credit?

Yes, with poor credit, you can still access finances to run your food truck business. Your credit score determines whether or not you would be approved for a bank loan, but there are numerous unconventional financial institutions that can help you out even with a poor credit score.

Starting a food truck in the United States will cost at least $50,000 on the lower end of the spectrum. Note that after licensing fees, promoting the business, purchasing new stock, and recruiting staff, your start-up cost may rise.

Considering where you want your food truck to be located and the type of food you want to serve, you could spend up to $80,000 to have a moderate food truck on a good site. A food truck business could be a thrilling and enjoyable activity.

You can improve your credit score over time by repaying outstanding debt, finding a co-signer, or trying to apply for government-backed loans that provide generous conditions and a far less stringent application process for individuals with poor credit.

7 Tips to Obtain Food Truck Financing With Bad Credit

  1. Examine your Credit Score

Credit scores rise or fall depending on some variables, so it’s good to check your credit score before applying for a loan. You might be amazed that your credit score has gotten better since the previous time you checked it. There are various websites where you can get free credit reports, they include Annual Credit Report, Experian, and Equifax.

  1. Improve your Credit Score

If you have a credit score (known as a FICO score) of less than 670, then according to lending institutions, you have a bad credit rating, and this would influence the number of banking institutions that will grant loans to you. There are things to do to enhance your credit rating over time and they include;

  • Pay your bills on time
  • Reduce current debt
  • Maintain a low credit limit
  • Avoid excessive movement
  • Have a credit card creator (an expert card primarily meant for individuals with bad credit to boost their credit score)
  1. Seek Loans that Fit Your Needs

You should know that every loan is unique. Most often, they are conditioned to adhere to strict classifications and the needs of applicants. Note that the food truck market includes tools and equipment that are not cheap, so you need to get loans that are suitable and appropriate for your food truck business.

You can choose from various business loans including; microloans, crowdfunding, SBA loans, business term loans, business line of credit, fixed-rate mortgages, no money down mortgages, and adjustable-rate mortgages. Each of these has its own set of guidelines. Examine and analyze loans that will meet these needs.

  1. Building down the Payments

Even if you already own a food truck, you are still viewed as a consumer. When your debt levels become high, progressing in business will be difficult. The principle of financial security, regardless of your situation, would depend on the management of your debt levels.

It is important to cut your monthly installments. You should identify a lender who can provide you with fantastic and low-interest rates. It would be preferable if you would find a lender who can offer zero percent interest loans.

  1. Obtain a Co-signer

A co-signer refers to a person, such as a friend or a relative who possesses a better credit rating than you do and can also apply for funding with you. Note that this person accepts responsibility if the loan is not paid back. This increases your likelihood of acceptance because it is up to the co-signer to pay back the loan, lowering the lender’s risk.

  1. Make An Application For Government-Backed Loans

Governments have money pots that are available to local governments to promote entrepreneurial spirit. The funds are dispersed to the society in form of small-scale business loans.

Since they are government-backed, they have much more lenient loan requirements, which indicates authorization is easier than for traditional lenders like banks. Through its “Microloan” program, the Small Business Administration (SBA) can provide up to $50,000 for items such as appliances, goods, inventory, and cash on hand.

  1. Online Lending

In this technological age, you can explore options to borrow money online. However, you first have to analyze which websites provide food truck loans despite the poor credit history. It is easy to obtain information as most websites showcase all of the essential measures and criteria for such loans.

Applying online results in a quick and painless business transaction. You will have the funds you require in just a few days.

There are advantages of this method, they include low-interest rates, the ability to choose terms of the loan, monthly payments, and a faster online application and transaction. It saves you considerably more time than trying to meet the financial institution in person, making it the most convenient option.


Bad credit would happen, whether you like it or not. Even if you already have bad credit, you can still get money to start your new business.

Obtaining food truck financing with bad credit may be difficult, but not impossible. Following the above tips will enhance your chances of getting your application approved, allowing you to get your food truck business up and running as quickly as possible.