Using Commercial Construction Loans To Finance Your Food Truck Business
More and more people are getting into the food truck business. It can be a fun way to make good money and achieve financial independence. However, you should consider taking out a commercial construction loan to manage your food truck and storage building needs.
Food Truck Costs Can Be High
Food trucks are often considered a low-cost business because you don't need to lease out commercial property or build a new restaurant. However, you will need to pay for converting a food truck and pay for commissary fees for running your business. All of these feeds can cost you anywhere from $25,000 to $100,000 just to get started running your business.
And these are just the costs of getting your food truck business started. One hidden cost that few consider is the cost of storing their truck. While you can always rent commercial truck storage facilities, it is best to build your own storage facility to save yourself a little money and to take control of your storage needs.
A Storage Area Can Also Be Costly
While a food truck can be a pricey investment, they can be worth over $200,000 a year if you make sure to keep them on the road during the year. The best way to do that is to keep them stored in a garage during off hours. That will help to protect them from serious damage and keep them running properly every time you take them out.
However, a good garage can cost anywhere from $16,000 to over $25,000 to build. As a result, it is important to research a few commercial construction loans. These loans can help you not only afford your garage but also afford to buy and modify a food truck. There are several different options which you can choose for your financing needs.
There Are Two Types Of Commercial Construction Loans
While you can get commercial construction loans from a variety of sources, there are two different types you can take out. These include short-term financing and long-term permanent financing. Short-term financing is designed to help provide you with the funding you need to build your garage and food truck. Long-term financing is more to manage the costs of maintaining your property.
Short-term financing is probably all that you need for your food truck and garage building. That's because you can build your storage garage on your home's property instead of on commercial property. As a result, you aren't likely to need much maintenance capital for your food truck. Long-term financing is only advisable for this business if you're struggling to pay your fees for parking your truck.
As you can see, investing in commercial construction loans can help get your food truck business up and running and provide you with the capital you need to succeed. So don't hesitate to talk to a financial institution like LCNB National Bank to learn more about the benefits of these loans.