Food trailers are mobile food service establishments which sell a variety of foods and has gained popularity throughout the years. According to the US Food Truck industry, the food trailer business is forecast to further increase in the upcoming years and starting a food trailer business can be highly profitable if done right. Once you have saved up some money and outlined a business plan, all there is left to do is find a food trailer to put your business into gear.
Before you start shopping around and begin filling out credit applications to finance a food trailer, it is best to determine the total amount you would need to finance. It is important to remain realistic when choosing the total amount to minimize your risk and reserve the most capital possible for operational expenses for the down payment, insurance, dealer fees, etc.
When financing a food trailer, your monthly payment and down payment will be determined by your credit. The better your credit score and history, the lower your monthly and down payment will be.
It is important to finance a food trailer that you can afford, and if you’re a business start-up or have fair credit, the cost should stay under $20K. We don’t advise anyone to apply for a food trailer loan or lease with various dealers and lenders all at the same time because this process will significantly impact your credit and further lower your FICO.
The last thing you need is multiple inquiries reflected on your credit. The best and most efficient way to approach the financing process is by first obtaining a free credit report and this can be easily accomplished by visiting websites like CreditKarma.
Once you have your current credit report, you have two ways to go about financing a food trailer without impacting your credit with multiple inquiries. You can contact several dealers to see if they can get you a conditional approval or send you financing quotes based on the credit report you’ve provided. This option is a bit time consuming and dealers can’t guarantee a formal approval, but they should be able to give estimated payment options.
Your other option is to contact an equipment lease broker company that may be able to review the provided credit report and see if you can qualify for any of the financing programs offered by their network of lenders. This route is a simpler way to finance a food trailer because the equipment lease broker can match you to the appropriate funding source versus you completing various credit applications by different dealers or financial institutions. You’re better off completing one application with an equipment lease broker company where they’ll pull your credit once to analyze your credit profile and layout the financing programs you may qualify for, then they’ll work towards securing the funds and if approved, you can then shop around for the food trailer of your choice. A good equipment lease broker will guide you throughout the entire process until the deal is funded and complete.
ABOUT THE AUTHOR
We’re an equipment lease broker firm that assists individuals and business owners in obtaining the funds needed to start or further expand their business with less than perfect credit. Our team has over 10 years of combined experience within the financing industry, and we have an extensive network of lending resources that serve many credit types and industries within the US. Our process is swift and easy without any upfront fees to begin, and we will never compromise your credit with multiple inquiries.