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50 Best Food Truck Financing and Loans With Bad Credit

Securing loans to start or expand a business is one of the financial tools business people leverage, and you can do the same if you want to start or expand your food truck business.

Any entrepreneur or business can approach a loan or financial institution to apply for business loans or financing options, but it is important to note that there is a restriction on who is qualified for what loans.

For example, if you have bad credit, it might be difficult to find a loan or financial institution that can offer you financing options.

This is because doing business or issuing loans to people with bad credit ratings is considered a risky venture. But that does not mean that people with bad credit ratings do not access loans.

In case you want to start or expand your food truck business, and you have bad credit ratings, you can still approach some loan or financial institutions that may consider your business loan application.

Best Financing Options and Loans for Food Truck Business With Bad Credit

  1. TimePayment

If you have bad credit and you are looking to acquire or lease a commercial vehicle, truck, or other equipment for your food truck business, then you may want to consider TimePayment. They issue financing options to people with bad credit, but you will be subjected to some screening.

Interest Rates: .0219 – .0626 (depending on your credit profile and the length of your lease term)

  1. LendSpark

LendSpark is renowned as a unique financing option that also considers people with bad credit, whether you want to purchase new or used equipment or vehicles for your food truck business and you have bad credit, they will consider you. The company also offers equipment leasing.

Interest Rates: As low as 5%, depending on your credit, and can go up to 35%.

  1. Crest Capital

Crest Capital is a national creditor with a focus on funding equipment, vehicle, and software purchases for small businesses including a food truck business.

Interest Rates: Around 5%

  1. Balboa Capital

Balboa Capital is an online lender that provides equipment loans, business loans, and lines of credit to growing companies including food truck businesses. Even if you have bad credit they will consider you.

Interest Rates: Average 13%

  1. LRM Leasing

LRM Leasing is known as a one-stop – shop for semi–food truck financing if you have bad credit. This is so because the firm does not conduct credit checks or background inquiries when approving loans for customers.

Instead, you will essentially lease – to – own your truck. LRM retains ownership of the vehicle — and can repossess it if you default on your loan — but turns the title over to you after you make your last payment.

Interest Rates: Average 11%

  1. First Capital Business Financing

First Capital Business Financing not only finances semi–trucks that can be used for a food truck business, but you can also get a loan for sprinter vans, medium-duty commercial trucks, heavy-duty tractors, dump trucks, and several other commercial vehicles that can be used for a food truck business.

Also note that the firm offers several financing options, with loans available for good and bad credit, start-up companies, and established businesses. Even those who have recent bankruptcies and repossessions may qualify for financing from LRM.

Interest Rates: Varies

  1. Anderson Trucking Service

Anderson Trucking Service (ATS) offers a wonderful option for you to purchase your new food truck. With the 12-month Food Truck Lease Purchase Program, you won’t need to undergo a credit or background check or make a down payment.

Instead, you can work off your payments or pocket the money to make a down payment for one of the company’s Freightliner, Peterbilt, or Volvo trucks.

Interest Rates: 7% – 32%


The network connects lenders with buyers who seek varying types of new and used vehicles that can also be used for the food truck business. These can include pickup trucks and some small commercial vehicles. Restrictions may apply for conversion vans, salvage title vehicles, or repossessed/auctioned vehicles.

Interest Rates: Varies

  1. Auto Credit Express

This company partners with both lenders and dealers who compete for your business, which gives you an edge in getting the best loan possible. The network requires that applicants be 18 years or older and provide a verifiable income of at least $1,500 per month. Loan options include light-duty or large pickup trucks that can also be used for food truck business.

Interest Rates: 3.99% – 29.99%

  1. Kabbage

This company is recommended for borrowers with lower credit scores. Instead of solely relying on credit scores, Kabbage evaluates a business’s financials and online accounts to determine if the loan application is approved or not.

More specifically, Kabbage will look at your business’s bank, online seller, payment processing, bookkeeping, and even social media accounts to determine your eligibility. The lender does not require collateral or a personal guarantee, which can be great news for some business owners.

Interest Rates: 20% to 80%

  1. Credibly

Credibly is an ideal choice for borrowers with lower credit scores who are looking for competitive rates and terms. Credibly does not focus on credit scores during the application process, but rather on a company’s financial health and stability.

Credibly has two loan products: a short-term working capital loan and a long-term business expansion loan. To qualify at Credibly, you will need to be in business for at least six months with $10,000 in monthly revenue and bank account deposits.

If applying for a business expansion loan, you will also need to have an average daily bank account balance over $1,000. You can borrow between $5,000 and $250,000.

Interest Rates: 9.99% to 36%.

  1. BlueVine

For individuals looking to take a slightly different approach to financing their food truck purchase, particularly a used one or one at the lower end of the cost spectrum, consider working with one of BlueVine’s lines of credit.

The most important fact to remember here is that you will need to pay off your balance pretty quickly to make it a viable option for your business.

That said, there are advantages to using a line of credit to purchase your food truck; rather than lock yourself into a specific model and vendor, you can comparison shop and purchase from anyone you want.

BlueVine’s lines of credit offer up to $250,000 in credit, with term lengths of 6 or 12 months. You will be repaying weekly in the former case, and monthly in the latter.

Interest Rates: 15% – 78%, and there’s a 1.6 – 2.5% fee per draw

  1. eLease

eLease deals exclusively in leases, but keep in mind that leasing does not necessarily mean “renting.” You can buy a food truck with a capital lease like the ones offered by eLease. They offer up to $500,000 in financing, which is more than enough to cover the purchase of a food truck.

Leasing terms range between 2 – 5 years and one of the bigger appeals of eLease is that they do not have any hard and firm borrower guidelines. They claim to be willing to work with new businesses and even businesses that have recently had to file for bankruptcy.

Interest Rates: 4 – 35%.

  1. SmartBiz

Although it may not be the most common way of purchasing a truck to use for your food truck business, but it is possible to buy one using a 7(a) or 504 SBA loan.

For those unfamiliar, an SBA loan is one that is partially guaranteed by the federal Small Business Administration. SBA loans are renowned for their generous terms lengths and good rates (at least compared to what newer businesses would normally qualify for).

SmartBiz aims to make the complex and intense process of getting an SBA loan a bit easier on businesses by streamlining the processes.

Interest Rates: 4.75 – 7%.

Alternative Source of Financing for Food Truck Business

Apart from all the financial institutions listed above, a businessman or woman who wants to start a food truck business can source business loans or financing from what is known as alternative sources. Some of the sources are:

  1. Personal Loans

Personal loans are one of the options available to someone with bad credit, and Banks, credit unions, online lenders, and peer-to-peer marketplaces all offer personal loans.

Although personal loans rely on your personal credit history and financial profile, some lenders accommodate borrowers with bad credit or allow you to use a cosigner. You can usually borrow anywhere from $1,000 to $50,000.

  1. Crowdfunding

Crowdfunding basically involves raising money for your venture or project from several different sources. Crowdfunding campaigns are usually run via the internet which makes it easy to share what your venture is and how it will help people. Kickstarter and Kiva are popular crowdfunding sites to consider using.

  1. Grants

Grants are funds that you do not have to pay back. Interestingly, the SBA, private, and non-profit organizations offer business grants. You can also check with your local chamber of commerce to see if there are any grants you could apply for as a food truck business.

  1. Credit Cards

If you have credit cards, you can use either your personal or business credit card to get the loan you need. Interestingly, a business credit card will offer a higher limit to help you cover more expenses.

Before considering using your credit cards, it is important to note that credit cards tend to have much higher interest rates than some loans, especially if you have bad credit.

  1. Home Equity Line of Credit

Another financing option you can access if you want to start a food truck business is a Home Equity Line of Credit. This is only applicable if you own a home.

With that, you can take out a Home Equity Line of Credit or HELOC by borrowing from the equity in your home. With a HELOC, you can borrow money as needed from a revolving line of credit.

Please note that the loans you obtain via a Home Equity Line of Credit or HELOC also have variable interest rates, but you can use the money for several expenses including funding your food truck business.

  1. Borrow from Family Members and Friends

If you are planning to start a small-scale food truck business, this might just be your best pick. There is a limit on the amount you can get as a loan from your family members and friends.

But the truth remains that there are family members and friends who can go all out to provide the soft loan you need to start your food truck business.