Although food trucks are popping up across the country, some hopeful owners are still struggling financing a food truck, and this has many culinary entrepreneurs wondering how to go about getting the cash they need to either start or maintain their business.

Many food truck vendors we’ve spoken with have personally financed their food trucks with their 401Ks, savings accounts or loans from their families. If you don’t have access to these sources of financing you may be wondering how to get your food truck business on the road.

These days you’re more likely to win at roulette than to secure a business loan. Nearly two-thirds of small businesses said they were denied by banks when they applied for a loan, according to a recent Pepperdine University survey. So many hopeful food truck owners have to get creative when it comes to raising money.

Financing A Food Truck In A Tough Economy

Bank Loans

Before you fill out that bank loan application, do some homework. If you are planning to use a bank loan for financing a food truck operation started, run a credit check and talk to local bankers about the criteria needed to get a loan.

Then, make sure you have a solid business plan that includes details such as a competitive analysis, the management process, a marketing analysis and financial projections.

Also be aware that you will be expected to lay out more of your own cash up front. Banks used to settle for anywhere from 10 percent to 20 percent in cash or assets put up by those seeking a loan. Now they are looking for closer to a 50-50 split, the more money that comes out of your pocket the better.

PLEASE NOTE: Finding a bank that will provide a loan for a start-up food truck business can be very difficult.

Micro Loans

If you are looking for a loan under $50,000, a microloan may be the way to go. The Small Business Administration’s Microloan Program provides small, short-term loans through specially designated intermediary lenders, which are usually nonprofit community-based organizations.

While the maximum amount is $50,000, the typical loan is for $13,000. The requirements to obtain a microloan are more lenient as far as your credit score goes, plus, many big banks are generally hesitant to approve loans for under $50,000.

Crowd Funding

Instead of heading to your rich uncle, look into the relatively new phenomenon of “crowd funding”. This type of loan is where you get small chunks of funding from everyone in a group such as Kickstarter.

This route has a lot lower risk for those involved. The other upside is you will have a lot of people with interest in your prospective food truck and they may be more likely to give you referrals and opportunities down the road.

RELATED: Crowdfunding Your Food Truck Project

What Not to Do When Looking For Financing

The “don’ts” can be just as important as the “dos” when it comes to financing your food truck business. Here are three pieces of advice on the subject.

First, don’t invest all your time in trying to raise money. There have been so many good business concepts that go sour because the person has committed everything to raising money and puts the concept on hold.

Second, ideas are great but execution is everything. Don’t pursue financing if you don’t have a working concept.

Lastly, don’t get hung up on the interest rate. If someone is offering you $50,000 at 12 percent and someone else is offering you $30,000 at 8 percent, the loan with the higher interest rate may be the way to go if that is the capital you need.

The Bottom Line

While there are many options for financing a food truck, the key is finding the one that best matches your personal situation. How did you finance your food truck? Share your thoughts on this topic in the comment section below or on social media. Facebook | Twitter