Leasing a Food Truck
Why leasing a food truck is Different than a Car
Written by Robert Mytelka CEO, Gourmet Streets
Leasing a Food Truck vs Leasing a Car
Many people call us interested in leasing a food truck. They seem surprised when we tell them that leasing a food truck is much different from leasing a car or a pickup, which most people are able to do. Here’s the differences and why.
When leasing a food truck or any vehicle to be used for business, as opposed to leasing a vehicle to be used for personal use, lenders and financial institutions react differently. Whereas just about anyone with even a mediocre credit score can succeed in leasing a car, they will most likely be turned down on their application for leasing a food truck. Essentially, that’s because lenders look at leasing a food truck as a business loan, and leasing a car, as a revolving personal loan, like a credit card. And for the past 6 years, banks have not taken to lending businesses money, unless they’re GM, IBM or Walmart.
Food Truck Lease Requirements
So what are the requirements then for leasing a food truck? Are you sitting? There are four basic requirements:
Credit score above 650
Clean credit history
Cash of $25K or more to be put into the business
Current employment, which means you currently have a paying job.
Oh, one other thing, experience in the food service business is looked upon favorably by lenders reviewing applications for leasing a food truck. The obvious problem: those looking at starting a food truck business, may want to or have already left their paying jobs; for others, the credit score and history presents a hurdle.
Practical Tips for Leasing a Food Truck
So what’s a food truckin’ guy or gal to do?
First, don’t give up your day job so quick, or if that’s already the case, put your employed spouse or significant other on the lease as well.
Secondly, take a look at your credit report, and if there are listed any pieces of detrimental information, contact those entities and ask them how you can get them removed (there are professionals in this business who can help).
Thirdly, if you have the money, or can get the money, put it into one account that you can show the leasing company as proof of funds. Lastly, if all else fails, find a co-signer for leasing a food truck who does fit the picture.
For more information about leasing a food truck, private labeling a food truck, mobile food services or starting a food truck business with Gourmet Streets, as well as a Free Food Truck Industry Business Report, Please click here. To Call us, our toll free number is 888.983.8383