Food Truck Merchant Cash Advance & Business Funding
Food trucks can get a merchant cash advance, but seasonality is the whole story. National staffing for mobile food businesses swings more than almost any other industry here, lowest in January and highest in August. A payment that's easy in summer can take a large share of deposits in winter, so size it on the slow months or wait for the season.
How do funders read food trucks?
Funders read how many months you've operated through a full year, because one summer doesn't show the winter. They'll also ask about events booked ahead, which can support an offer in the off-season.
How does money come in for food trucks?
Most sales are by card through a mobile point-of-sale system, with some cash. Catering and event bookings come as invoices or deposits paid ahead. Commissary rent, fuel and event fees go out on their own schedules.
Which months are slowest for food trucks?
This table shows how many people private mobile food services (NAICS 722330) businesses employed each month, as an index where the year's average is 100. It comes from the Bureau of Labor Statistics Quarterly Census of Employment and Wages, the most recent full year available. Staffing is a stand-in for how busy a business is. Deposits can move more or less than headcount, so read it as the shape of the year, not your numbers.
| Month | Staffing index (average = 100) | |
|---|---|---|
| January | 75 | lowest |
| February | 77 | |
| March | 85 | |
| April | 95 | |
| May | 108 | |
| June | 115 | |
| July | 117 | |
| August | 121 | highest |
| September | 113 | |
| October | 106 | |
| November | 96 | |
| December | 92 |
The low point is January at 75.4 and the high point is August at 121.1, a swing of 45.7 points. This is the steepest curve on our industry pages.
| Quarter | Total payroll index (average = 100) |
|---|---|
| Quarter 1 | 78 |
| Quarter 2 | 101 |
| Quarter 3 | 116 |
| Quarter 4 | 105 |
Payroll by quarter can rise at year end for reasons like bonuses and overtime, not only more work.
What do food trucks use merchant cash advances for?
- Truck or generator repairs before the season.
- A second truck or trailer.
- Permits and event fees paid in advance.
- Inventory for a festival or a catering contract.
- Equipment like fryers and refrigeration.
What does an advance payment look like in a slow month?
Say a business like yours deposits $35,000 in an average month, and a funder sets a fixed payment of $3,500 a month, 10% of that average. If deposits follow the staffing curve above, here's what the same payment takes in the slowest and busiest months:
| Deposits | Fixed payment | Share of deposits | |
|---|---|---|---|
| Average month | $35,000 | $3,500 | 10.0% |
| January, the slowest | $26,400 | $3,500 | 13.3% |
| August, the busiest | $42,400 | $3,500 | 8.3% |
The payment doesn't change, but in January it takes 13.3% of deposits instead of 10%. Ask the funder to size the payment on the slow months, or ask how reconciliation works before the slow season starts.
Which funding options fit food trucks?
Each page runs one option against this industry's slow months.
Same-day merchant cash advance for food trucks
Money the same business day for an urgent cost, with the fixed daily debit measured against January.
Business line of credit for food trucks
A draw sized for January, repaid in thirds, with the interest on the balance worked out.
MCA consolidation for food trucks
One payment in place of two, with the share of deposits before and after in January.
Second position MCA for food trucks
What a second advance adds on top of the first, and what both payments take from deposits in January.
Revenue-based financing for food trucks
A remittance that moves with revenue, so January sends less, and the months to reach the repayment cap.
Run a business like this?
Tell us your slow months up front and we'll look for funders that size for them. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.