Best Term Loans for Food Trucks

The best term loan for a food truck depends on your track record and how fast you need the money. If you have steady sales and need funds this week, Merchant Fund Express, our recommended funder, reviews your deposits and not just your credit. If you have a year in business and a solid score, OnDeck and Credibly offer terms up to 24 months. If you can wait, a microloan or an SBA 7(a) loan usually costs less.

A term loan gives you a fixed sum today that you repay in installments over a set period. For a food truck, it's built for purchases with a clear date and price: a new generator, an exhaust hood, a paint job and wrap, a second trailer, or a commissary deposit. Below are the ranked options, a comparison table, and how to tell whether the payment survives your slow season.

The best food truck term loans, in order

How we chose. We don't use ratings or made-up scores. We compared every option on the same criteria: decision speed, minimum time in business, minimum credit, ITIN or no-SSN acceptance, documents, amounts and collateral. We only used data each company publishes on its official site, checked on October 20, 2026; if we couldn't confirm something, we left it out. For food trucks we gave extra weight to payment frequency and minimum time in business, because many trucks are under two years old and their sales swing with weather and events. Read the full method on how we rank business funding options.

1. Merchant Fund Express (recommended funder). A food truck takes card and cash payments almost every day, and here approval is based on your sales and deposits, not just your credit. It considers profiles from a 500+ FICO, with amounts from $5,000 to $5,000,000 and decisions that often arrive in 2–4 hours. Collateral isn't required in most cases, ITIN applicants are accepted, and Spanish-speaking support is available. Applying is free and doesn't affect your credit: apply here.

2. OnDeck (Term Loan). Its term loan runs from $5,000 to $400,000, with terms up to 24 months. Its published minimums are 1 year in business, a business checking account, $100,000 in annual sales and a 625 personal FICO. Checking eligibility doesn't trigger a hard pull. It fits an established truck that wants to upgrade its kitchen.

3. Credibly. Its working capital loan runs from $25,000 to $600,000, with terms of 6 to 24 months and automatic daily or weekly payments. It generally asks for 6+ months in business, $20,000+ in average monthly deposits and a 550+ FICO. Useful for a younger truck with strong sales.

4. Backd. Its Business Term Loan lists amounts from $50,000 to $1.5 million, terms up to 24 months and automatic payments. It asks for 1 year in business, a 650+ FICO, $100,000 in monthly revenue, a business bank account and U.S. operations. It only makes sense for operators with a fleet or large catering contracts.

5. SBA microloan. The SBA funds microloans up to $50,000 made by approved nonprofit community lenders. They can be used for equipment, inventory or working capital, with a maximum term of 7 years and rates the SBA describes as generally between 8% and 13%. They can't be used to repay existing debt.

6. SBA 7(a) loan. Up to $5 million through a participating bank, with rates subject to SBA caps. It's the cheapest option if you qualify, but the process takes longer and, since March 1, 2026, all owners must be U.S. citizens or nationals with their principal residence in the U.S.

Comparison table

"Not published" means we couldn't find it on the company's official site. Ask before you apply instead of assuming.

What to finance with a term loan, and for how long

A term loan is the right tool when the expense is large, paid once, and will outlast the loan. These are the most common food truck uses, with the term that usually makes sense:

• Kitchen equipment (flat-top, fryers, refrigeration): a 12 to 24-month term is usually enough. If the equipment itself can secure the loan, also look at equipment financing for food trucks.
• Generator or power system: a big expense that shows up in sales from the first event. Short or medium term.
• Wrap, signage and digital menu boards: branding costs that pay back quickly if you're parked in good spots; don't finance them over years.
• Second truck or trailer: here a longer term, like an SBA 7(a) or a microloan, keeps the payment from choking operations.
• Commissary, permits and seasonal deposits: better covered with working capital or a line of credit, since they repeat.

If your need is for weeks rather than months, compare a short-term loan for food trucks. And for the full picture beyond term loans, see our guide to financing for food trucks.

Will the payment survive your slow season?

The key question isn't how much you're approved for, but whether the payment fits your worst month. Food trucks live by seasons: summer, fairs and festivals are strong; rain, cold or an expired permit can cut sales in half. Run this test before you sign:

1. Pull your deposits for the last 12 months and find the two slowest months.
2. Subtract that month's fixed costs: commissary, fuel, propane, insurance, permits, wages and your truck payment if it's financed.
3. Compare what's left with the equivalent monthly payment. If the payment is daily or weekly, multiply it by the days or weeks in that month.
4. Leave a cushion. If only a few hundred dollars remain after everything, a generator breakdown puts you in trouble.

Also ask how the payment is collected. Many online funders debit daily or weekly payments from your account, which matches a business that deposits every day but gets heavy in weeks without events. A bank or SBA loan usually bills once a month. If your sales are very uneven, ask for the frequency that best matches your deposits.

Which to choose for your situation

A practical rule: if the cost gap between options is large and the event can wait, the slower, cheaper option almost always wins. If missing the event would cost you more than that gap, speed has real value.

Documents and common mistakes

Have this package ready before you apply anywhere; it saves days:

• Business bank statements for the last 3 to 6 months (banks and the SBA may ask for more).
• Reports from your payment terminal (Square, Clover, Toast) showing daily sales.
• ID, SSN or ITIN, and your EIN if you have one.
• Health permits, vendor license and vehicle registration.
• A quote for the equipment or truck you're buying.
• Business tax returns for SBA or bank loans.

Common mistakes:

• Depositing cash into your personal account. If cash sales don't show up in the business account, no funder can see them.
• Asking for more than you need. A bigger payment shrinks your margin in the off-season.
• Applying in five places at once without comparing. Ask first what kind of credit check each one runs.
• Ignoring payment frequency. Two similar offers can feel very different if one debits daily and the other monthly.
• Signing without understanding the total cost. Get the cost and the APR in writing and compare them.

Want to see first how much you could get? Our recommended funder reviews your deposits, offers Spanish-speaking support, and applying doesn't affect your credit.