How do I show a lender the equipment value of a food truck I want to buy?

Lenders look at a food truck in two parts: the vehicle and the kitchen equipment built into it. List each separately. For the vehicle, include its records, mileage and any recent repairs. For the kitchen, list the fryers, grills, refrigeration, generator and ventilation, with ages and condition noted beside each.

Ask the seller for proof that the equipment is owned outright. If something is leased or financed, the lender will need to know, and the debt may have to be cleared at closing. Ask for receipts, inspection reports and service logs, since a well-documented unit is easier to assess.

An independent equipment appraisal carries more weight than your own estimate. Ask the lender whether they want a particular type of valuation and who is acceptable to them. Do not treat the equipment as the whole case. Lenders also ask about the truck’s sales, your experience and how you plan to repay. Bring those pieces together in one package, and have an accountant review it before you submit. Ask the lender how old a unit can be before it declines the file.

Key takeaways

• Itemize the vehicle and the kitchen equipment separately, with condition and serial numbers.
• Confirm nothing is leased or pledged to someone else before you apply.
• Get an independent appraisal and ask the lender what format it prefers.
• Ask the lender how it treats an older vehicle or a custom build.