A Superior, WI restaurant would finance a concession trailer with equipment financing for the trailer and its kitchen, read against the restaurant's own sales and the event calendar the trailer will work. An operating restaurant has a stronger file than a new food truck, because its records show it can run a kitchen.
Glenland Credit in Superior, Wisconsin explains how a Douglas County restaurant can fund a concession trailer or food truck, how long the financing can run, and an invented event-season budget.
Food Truck Small Business Loan: How Superior, WI Restaurant Owners Use It
A food truck small business loan for an existing restaurant is usually equipment financing: the trailer or truck and its kitchen are the collateral, and the restaurant's sales are the proof the payments can be made. A lender reads the quote, the restaurant's returns and statements, and a plan for where the trailer will work.
The plan does not need to be long. A page listing the events the trailer will work, the expected sales at each, the menu and who will staff it gives a lender what it needs to read the trailer next to the restaurant's own numbers.
Douglas County, WI counted 74 restaurants and other eating places with a payroll in 2023 (CBP), and a trailer gives any of them a second counter. Restaurant loans covers the main kitchen.
Business Loans for Food Trucks: How Douglas County, WI Restaurant Owners Use It
Business loans for food trucks take three forms: equipment financing for the vehicle and kitchen as one unit, a term loan with the kitchen on a separate equipment loan, or a lease with a buyout. A trailer costs less than a motorized truck and needs a tow vehicle the restaurant may already own.
Insurance belongs in the budget from the start: a trailer needs auto or trailer coverage while towed and liability coverage at events, and a lender will want to be named on the policy for the equipment it finances.
Equipment financing lists a food truck example; business term loans covers longer builds.
Can You Finance a Food Truck? How Douglas County, WI Restaurant Owners Approach It
Yes, a food truck or trailer can be financed, new or used. A used trailer is financed on a shorter term, with its year, VIN and an inspection or appraisal. A custom build is financed on the builder's quote, often with a deposit and payments that start on delivery.
Builders of custom trailers often take a deposit with the order and the balance on delivery. Ask the lender whether it pays the builder directly at delivery, and whether the deposit can be counted toward a down payment.
A trailer serving food may need a mobile retail food establishment permit; Douglas County's environmental health office lists one among its permit applications. Ask before buying where the trailer will be licensed.
How Long Can You Finance a Food Truck? What Douglas County, WI Restaurateurs Weigh First
How long a food truck can be financed depends on the unit: a new trailer with a built kitchen may run five to seven years, a used one less. A lender sets the term against the unit's working life and the restaurant's file. A restaurateur should match the term to how long the trailer will earn, and check whether payments can follow the event season.
Consider the off-season too. A trailer parked for several months still needs storage, insurance and a payment, so a restaurant can ask whether payments can be set lower in the months without events and higher during the season.
A merchant cash advance, which is not a loan, is sometimes offered for trailers; for a unit that works for years, equipment financing usually costs less in total.
An Invented Concession Trailer Budget for a Superior, WI Restaurant
Illustration only, invented figures: a Superior, WI restaurant buys a $34,000 concession trailer and $18,500 of kitchen equipment built in, $52,500 in all. Paid off over five years at an invented 10.5% annual rate, the rig costs close to $1,128 a month (our arithmetic).
Invented figures continued: the trailer works 22 events a year. At about $13,541 a year in payments, each event has to clear about $616 after food, labor and fees just to cover the loan (our arithmetic). The owner lists the booked events and their fees before signing.
Invented figures continued: in the months without events the payment still comes due, so a restaurant with a strong main location carries the trailer more comfortably than one that depends on it.
By Glenland Credit · Updated
