Can Your Food Truck Revenue Handle a Loan?
Most food truck owners finance the truck. The question isn't whether you'll take a loan. It's whether your revenue can survive the payment.
A typical food truck loan is $50,000–$100,000 for the truck itself, plus potentially another $10,000–$30,000 for equipment and working capital. Interest rates for food truck financing range from 6% (SBA microloans) to 20%+ (online lenders and equipment financing companies). The rate you get depends on your credit score, time in business, and whether the truck serves as collateral.
Let's run the numbers on a common scenario.
$75,000 truck loan at 10% over 5 years. Monthly payment: $1,593. If your food truck does $12,000/month in revenue (a realistic early-stage number), that payment is 13.3% of revenue. Tight but workable. If your other costs are controlled.
But food truck margins are thin. Food costs eat 28–35% of revenue. Add fuel, commissary rental, permits, insurance, and supplies, and your monthly operating costs before the loan payment are already $6,000–$8,000. On $12,000 revenue, that leaves $4,000–$6,000. A $1,593 loan payment takes a big bite out of what's left.
| Monthly Revenue | Operating Costs | Remaining | Loan Payment | After Payment | Viable? |
|---|---|---|---|---|---|
| $8,000 | $5,500 | $2,500 | $1,593 | $907 | Barely |
| $12,000 | $7,000 | $5,000 | $1,593 | $3,407 | Yes |
| $15,000 | $8,500 | $6,500 | $1,593 | $4,907 | Comfortable |
| $20,000 | $10,500 | $9,500 | $1,593 | $7,907 | Easy |
The danger zone is the first 3–6 months. Most food trucks don't hit $12,000/month immediately. If you're doing $6,000–$8,000 in your first few months while you build a customer base and figure out your best locations, that loan payment can wipe out your remaining cash. This is where food truck businesses fail. Not because the concept is bad, but because the loan payment doesn't wait for revenue to catch up.
SBA microloans are the best option for food trucks. They go up to $50,000 at rates of 6–9%, with terms up to 6 years. The lower rate and longer term reduce the monthly payment significantly. A $50,000 SBA microloan at 7% over 6 years is about $852/month, roughly half the payment of the same amount at 10% over 5 years.
| Loan | Rate | Term | Monthly Payment |
|---|---|---|---|
| $50,000 SBA microloan | 7% | 6 years | $852 |
| $75,000 equipment loan | 10% | 5 years | $1,593 |
| $75,000 online lender | 15% | 4 years | $2,088 |
| $100,000 SBA 7(a) | 8% | 7 years | $1,560 |
Before you sign, stress-test the payment. What if revenue is 30% lower than expected for three months? Can you still make the payment? If the answer is no, either borrow less, find a lower rate, or build more cash reserves before launching.
The Business Loan Calculator Affordability tab shows exactly what percentage of your revenue goes to the payment. The How Much tab works backward: enter your revenue and the maximum percentage you're comfortable allocating, and it tells you the largest loan you should take.
Frequently Asked Questions
Can I get a loan for a food truck?
Yes. SBA microloans (up to $50,000), SBA 7(a) loans, equipment financing, and online lenders all finance food trucks. The truck itself often serves as collateral. Rates range from 6% (SBA) to 20%+ (online lenders) depending on your credit and business history.
How much should my food truck loan payment be?
Under 15% of monthly revenue is the safe target. For a food truck doing $12,000/month, that means a maximum payment of $1,800. Remember to account for thin food truck margins: after food costs, fuel, and operating expenses, the loan payment comes out of what's left.
Should I finance or buy a food truck outright?
If you can buy outright, you eliminate monthly payments and interest costs. But most people can't write a $75,000 check. Financing makes sense if the rate is reasonable (under 12%) and the payment fits within your projected revenue. The key is not overextending: a cheaper used truck with a smaller loan is often smarter than a new truck with a large loan.
What credit score do I need for a food truck loan?
SBA loans typically require 650+. Equipment financing companies may go as low as 580 but charge higher rates. Online lenders vary widely. The higher your score, the better your rate, and on a $75,000 loan, even a 2% rate difference saves $5,000–$8,000 over the loan term.