When running a food truck, there’s always room for improvement. Whether you’re looking to expand your menu, upgrade your equipment, or take your business to the next level, a small business loan can be a great way to get the funding you need.
If you’re wondering about any small business loans Texas offers, there are a few different options available. Here are four small business loans Texas food truck owners can apply for:
1). SBA Microloan Program
The SBA Microloan Program is a small business lending program that helps entrepreneurs with limited access to capital get the financing they need to start or grow their businesses. The program provides loans of up to $50,000, which can be used for various purposes, such as working capital, inventory, or equipment. It is administered by the Small Business Administration (SBA), and loans are made by participating lenders, such as community development financial institutions (CDFIs) and non-profit organizations.
To be eligible for these loans, your business must:
- Be for-profit
- Have employed less than 500 people
2). Bank Term Loans
Bank-term loans are financing options that allow you to borrow money from a bank for a set period. The loan term can vary, typically between one and five years. This type of financing is often used for large purchases, such as food trucks.
When considering a bank term loan for your food truck business, remember a few things: You’ll need good credit to qualify. The interest rate on a bank loan can be higher than other types of financing, so you’ll need to be sure that you can afford the monthly payments. Shop around and compare rates from different lenders before choosing your lender. You can find the perfect loan for your business with a little research.
3). Business Lines of Credit
Business lines of credit loans are unsecured, meaning no collateral is required to secure the loan. The loan amount will also be based on the monthly sales of the food truck business. Their repayment terms are also flexible, and the interest rates are relatively low.
Another advantage of these loans is that you can use them for various purposes, such as buying new equipment, expanding the business, or even covering unexpected expenses.
4). Merchant Cash Advances
For merchant cash advance loans, you don’t have to put up collateral to qualify. Instead, the lender will review your credit card sales to determine how much money you can borrow.
The great thing about merchant cash advance loans is that they’re easy to qualify for. Even if you have bad credit, you may still be able to get financing. And, because the loan is based on your credit card sales, there’s no need to make fixed monthly payments. Instead, the lender will automatically deduct a percentage of your daily credit card sales until the loan is paid off.
Starting Your Food Truck Business With Legion Food Trucks
After securing a small business loan in Texas, you can be on your way to owning your food truck and running a successful business. Legion Food Trucks can help. We design and build fully customized, cutting-edge food trucks for our customers from idea to completion. Each food truck that leaves our floor has passed every inspection to ensure a smooth business. Contact us now to let us help you.