A Vineland, NJ restaurant or deli owner can finance a food truck or trailer much like the kitchen's own equipment: an equipment loan or term loan against the unit, with the restaurant's statements and history behind the request. The truck here stays the restaurant's own unit, selling the restaurant's food. Prices in this article are invented.
A step van, a towed trailer and a cart are three different purchases with different running needs. A used unit can call for a mechanic's report on the vehicle and a check of the cooking line. The griddle, generator and wrap can share one agreement or not, and the request leans on the restaurant's own statements because the truck has no history yet.
Financing food trucks for a Vineland, NJ deli: a step van, a towed trailer or a cart
For a deli or diner that already cooks for a dining room, a mobile unit is a second place to sell the same menu. The first choice is which kind of unit, because each one brings its own costs beyond the price. The invented prices below are for comparison only:
| Unit | Invented price | What else it needs | Product that can fit |
|---|---|---|---|
| Step van with a kitchen built in | $86,000 | Nothing to tow it; it drives itself | Equipment loan or term loan |
| Towed concession trailer | $42,000 | A pickup or van able to pull it, owned by the deli or bought with it | Equipment loan |
| Push cart or small kiosk | $9,500 | A place to store it and a way to move it to events | Equipment loan or line of credit |
The trailer stays the cheaper unit in this invented comparison only while the deli already has a vehicle that can pull it. If the pickup has to be bought too, the trailer and the pickup become one request, and the gap to the step van narrows. A cart suits catering at fixed events and is small enough that a line of credit draw may cover it.
A food truck loan on a new or used unit: the inspection report and papers a funding partner may ask for
A new unit comes with a builder's quote and a build sheet listing the cooking equipment, the generator size and the delivery date. A builder may ask for a deposit when the order is placed; ask when the balance is due and ask the funding partner when money is released, because the two dates may not line up, and the deposit may have to come from the deli's own account.
A used unit has a past, and a funding partner may ask to see proof of it before making a food truck loan offer. Papers that can help:
- A mechanic's inspection report covering engine, brakes, tires and the frame
- A written check of the cooking line: whether the griddle heats evenly, the fryers hold temperature and the refrigeration holds cold
- Generator hours from its meter, and its service record if the seller kept one
- The title in the seller's name and a bill of sale with the agreed price
- Photos of the kitchen interior and the exterior
A partner may offer a shorter term on an older unit, ask for a larger down payment or pass on it; those choices are the partner's to make.
How to finance a food truck with its griddle, generator and wrap: one agreement or two
An invented step van at $86,000 breaks into four parts:
- Chassis and body: $64,500
- Cooking line: griddle, two fryers, reach-in refrigeration: $13,800
- Generator: $5,600
- Wrap and menu boards: $2,100
Option one puts the whole invented $86,000 on one 60-month equipment loan at 10.9% a year: $1,865.56 a month, $111,933.60 across the term. Option two pays the $2,100 wrap from the deli's account and finances the other $83,900 on the same terms: $1,820.01 a month, $109,200.60 across the term.
The invented wrap adds $45.55 to each monthly payment when it rides on the loan, and financing it costs $633.00 in interest over five years. A wrap cannot be sold apart from the truck, so paying it in cash keeps the loan tied to parts that hold value. Fuel, propane and the first food orders for the truck are running costs; a short working capital loan or a line can carry them while the truck finds its stops.
Food truck lenders and the restaurant's own record: keeping the truck on the Vineland, NJ deli's books
A new truck has no sales of its own, so a request for it rests on the restaurant behind it: how long the deli has been open, its annual revenue and its business bank statements. A funding partner may also look at how the truck fits the deli's plan, for example office lunches, catering orders the dining room already gets, or events where the deli has sold before.
Keeping the truck inside the restaurant's own books helps later. A separate location in the POS system and a separate deposit account for truck sales show, month by month, what the truck brings in and what it costs to run. After a year, that record can support a second unit or a term loan for a larger one.
More restaurant costs, from buying an open restaurant to a flat-top grill, are on the restaurant funding page.
By Rowanstead Advances · Updated
