Business loans for food truck businesses

• Cash flow challenge: Food truck owners often needing significant upfront funding for the vehicle, kitchen equipment, licences, and stock before consistent revenue is established.

• Perfect for: Aspiring food truck entrepreneurs and established mobile catering businesses seeking finance to purchase a vehicle, upgrade equipment, expand locations, or manage seasonal cash flow.

Starting or growing a food truck business can be an exciting step. Whether you’re launching your first mobile catering venture or expanding to additional locations, access to the right funding can make the process smoother and less stressful.

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What can food truck business loans be used for?

Funding for food truck businesses can support a wide range of needs, including:

• Purchasing a new or used food truck
• Converting a van into a fully fitted catering vehicle
• Kitchen equipment such as ovens, grills, refrigeration and extraction systems
• Branding and exterior signage
• Licences, permits and insurance
• Hiring staff for busy trading periods

Clearly outlining how funds will be used can help ensure the finance structure matches your business goals.

Funding options available for food truck businesses

There is no single funding solution that suits every operator. The right option depends on whether you are starting out, upgrading equipment, or expanding an established business.

There are various business loans and finance options to help your business:

Start Up Loans

For new operators, government-backed Start Up Loans can provide unsecured personal lending used for business purposes. These loans often include fixed repayment terms and access to mentoring, which can be especially valuable in the early stages of launching a food truck.

Unsecured business loans

Unsecured business loans do not require assets as collateral and may suit established traders who need funding for refurbishment, marketing, or working capital. They can provide flexibility while keeping assets separate from the borrowing agreement.

Asset and vehicle finance

Because a food truck is a physical asset, vehicle or asset finance can be a practical option. This allows you to spread the cost of the truck or kitchen equipment over time, helping preserve working capital for day-to-day operations.

Working capital finance

Food truck income can fluctuate depending on events, weather, and seasonality. Working capital loans can help smooth cash flow during quieter periods or support stock purchases ahead of busy festivals and markets.

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Comparing common funding routes

How much can you borrow?

The amount available will depend on factors such as:

• Whether the business is already trading

• Revenue projections and contracts

• Existing financial commitments
• The cost of the vehicle and equipment
• Personal and business credit profile

For new food truck entrepreneurs, lenders may also consider the strength of the business plan and experience in catering or hospitality.

Planning for seasonal trading

Food truck businesses often experience peaks during festivals, markets, and summer months, followed by quieter periods. Building these cycles into financial planning can help ensure repayments remain manageable year-round.

Careful forecasting and contingency planning can provide reassurance when applying for funding and reduce pressure once trading begins.

Things to consider before applying

Before committing to any finance, it’s helpful to consider:

• Whether projected income comfortably covers repayments

• The total cost of borrowing over the full term

• Insurance and maintenance costs for the vehicle
• Future expansion plans

Taking time to review these factors supports sustainable growth rather than short-term fixes.

How Novuna Business Cash Flow can help

At Novuna Business Cash Flow, we support hospitality and mobile catering businesses across the UK with funding solutions tailored to their stage of development. Speak to our experts today and we will help you find a great fit for your situation.