Guide

The food truck broke down and you cannot earn until it is fixed. What is realistic?

A working capital advance underwritten on your deposits from before the breakdown is the realistic route, funded in one to three business days for amounts around half to one and a half times a month's sales. Apply now rather than after a month of zero — funders weight recent statements. A generator, unlike an engine, can be financed as equipment.

Why a food truck is the hardest breakdown to fund

A restaurant with a dead oven still has a dining room and a fryer. A food truck with a dead transmission has nothing: the vehicle, the kitchen and the storefront are one machine, and when it stops so does every dollar of revenue. Most owners run one truck, so there is no second unit covering the shortfall.

That matters for funding because a funder reads your bank statements, and a truck that has been parked for five weeks shows five weeks of nothing. The single most useful thing you can do is apply in the first week, while the statements still show what the truck earns.

Engine and transmission: working capital, sized to what you deposited

Drivetrain work on a step van or a converted box truck is labor and parts, and nobody finances it as an asset. A short-term working capital loan or a cash advance funds it, decided in about a day and paid in one to three business days.

Amounts run half to one and a half times one month's deposits. A truck doing $25,000 a month in a good season can expect offers from about $12,000. That covers most transmission jobs and a good share of engine work.

Card revenue helps here. Food trucks are card-heavy, and a true holdback — repayment as a percentage of card settlements rather than a fixed daily debit — means the payment falls to almost nothing on the days you are still parked. Ask for it by name.

What each underwriter weighs

A BANKA REVENUE-BASED FUNDERPERSONAL CREDIT SCOREheavysomeCOLLATERAL TO PLEDGEheavynot looked atTWO YEARS OF TAX RETURNSheavynot looked atTIME IN BUSINESSheavysomeMONTHLY BANK DEPOSITSsomeheavyDEPOSIT CONSISTENCYnot looked atheavyINDUSTRY AND STATEsomeheavy
The same business, read two different ways. A bank decision is built on credit, collateral and filed accounts; a revenue-based funder builds it on the money moving through your account. That is the whole reason a bank decline says very little about whether you can be funded.

Generator, refrigeration, cooking line: those are equipment

A generator that dies is a different case. A commercial generator is an asset with a serial number and a resale market, and an equipment lender will finance a replacement over two to five years with the unit as security. Same for a new refrigeration unit or a griddle-and-fryer package.

It costs less than working capital and takes a day or two longer. If the failure is a component with a value, finance it as one.

The season question

If the truck breaks in October in a northern city, the honest comparison is between funding a repair now and parking it until March. The repayment on any advance is fixed against sales that may not exist in January.

Funders look at the last three to six months, so an application in spring, after a strong April and May, will produce a better offer than one in November against a fading season. If you can wait, the money is cheaper for waiting. If the truck is your whole income, you cannot, and weekly payments plus a true holdback is the shape to ask for.

Sources

Related questions.

Can I get a loan for a food truck repair with bad credit?
A cash advance underwritten on deposits does not turn on your score, and scores in the 500s are funded routinely. The truck's deposit history is what decides the amount.
Should I finance a whole new truck instead?
A new or used food truck is an asset and finances as equipment over several years. If the repair quote is a large fraction of what a replacement would cost, price the replacement; the monthly on a financed truck is often less than the daily on an advance.
I've only had the truck eight months. Am I too new?
Six months of deposits is the usual floor for working capital. At eight months you clear it, though offers will be at the smaller end and shorter term than at two years.

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