In today’s “on-the-go” era, everything is mobile – you could even make money while traveling with the help of the Quantum Code. That is what makes this the best age for food trucks. People who are always on the move, people who have not time to wait at the counter to get food at restaurants, prefer grabbing their food at a food truck on their way to the office or to their college.
Being successful in the food industry especially with a food truck takes a lot more than just the availability of funds. You would need a solid business plan that gives you an exact idea about the road ahead and yes, help you fetch the right investors as well!
Food security measures to end hunger are being implemented all over the world. As a part of this measure, the Government is also encouraging affordable and healthy food from food businesses. So if you plan your business right, you can get a lot of funding options to get your food truck business going.
Here are some of the common ways one can raise funds when they are looking to finance their food truck business:
Credit card payments:
If you can plan wisely, decide on the number of credit cards you can manage to pay back and also make a plan about how and when you would be able to make the payments. Keep in mind that credit cards do come with high-interest rates and thus can be a hefty option if not planned well.
Merchant Capital Source, Advance Me, there are many more such Merchant Cash Advance companies that grant advances that could be repaid with credit cards. Again, these come with heavy interest rates.
With the advent of Internet into the business sector, there are several benefits like the lending clubs. There are online lending clubs where you can get in touch with individuals who are willing to lend money. The interest rates might be relatively higher as there is also a third party website involved in the transaction and the process comes with its own complications.
Home equity loans are comparatively easier to apply. This is because lenders are often more confident in lending money against collateral. And if you own a house, then it makes great collateral for a home equity loan. This, in relation to several other lending types, comes with a lower interest rate. But the risk here is the fact that you lose your house in case you fail to fulfill the payment terms.
Small Business Administration loans:
Now the regional governments in almost every country encourage small businesses. Small business administration organizations back up lending agencies and other financial bodies willing to release funds for small business owners. This is because a successful business can also improve the job market and the overall financial state of the region in the long run. These loans mostly come in a number of types and tenures. You would also need a certain amount to be paid up front as the down payment and might not be able to receive your entire capital from these loans.
Credit union loans are other attractive options as the interest keeps reducing each month as the remainder loan amount keeps reducing. There are then the traditional bank loans which might not be available for a first-time startup, however. If you own a restaurant already and wish to expand by buying a food truck, then you could apply for a bank loan. Each option comes with its own risk. When it comes to financing a food-truck business, there is no one-size-fits-all option.
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