Hot Dog Cart Financing

Hot Dog Cart Financing

Creative Ways to Finance a Hot Dog Cart

If you’ve been thinking about getting into the dog-slinging business, here’s some good news for you. Purchasing a hot dog stand, as well as all of the supplies required to run the business, is one of the most affordable business opportunities available. Comparing this business model to the financing requirements you’ll need to start a franchise restaurant or food truck, you’ll see that this is a tiny fraction of the cost of getting started.

In light of the foregoing, I understand that it can be difficult to come up with the $6,000 – $10,000 in startup capital required to start this type of business, especially when you factor in the cost of the cart, health permits, napkins, sausages, rolls and other condiments, among other expenses. Everything adds up! There is no need to be concerned about how you will be able to afford your own cart and eventually become a business owner. We’re going to walk you through the most intelligent methods of financing a golf cart.

Don’t be concerned if you ultimately decide to seek funding from a traditional lender to launch your company; doing so does not imply that you are a complete moron. In fact, the monthly payments on a hot dog cart will be significantly less than the payments on a car, and the cart has the potential to generate revenue if it is used properly. Obtaining a loan, on the other hand, is one of the least desirable options. If at all possible, you would like to avoid making another monthly payment, and once you have acquired ownership of this business asset free and clear, it will serve as an income-generating vehicle for you in the future.

Don’t be concerned if you ultimately decide to seek funding from a traditional lender to launch your company; doing so does not imply that you are a complete moron. In fact, the monthly payments on a hot dog cart will be significantly less than the payments on a car, and the cart has the potential to generate revenue if it is used properly. Obtaining a loan, on the other hand, is one of the least desirable options. If at all possible, you would like to avoid making another monthly payment, and once you have acquired ownership of this business asset free and clear, it will serve as an income-generating vehicle for you in the future.

The other option is to find a part-time job in the restaurant or fast food industry, which can be done from home. Even if you’re only working at McDonald’s a couple of days a week, you’ll pick up a few tips on how to serve customers quickly and maintain a clean and efficient operation. Additionally, you will gain valuable experience in the operation of your future business while earning some extra money.

Sell Non-Appreciating Assets – Do you have a non-appreciating asset, such as a motorcycle, that is collecting dust in your garage? If you do, you may be able to sell it quickly and easily in order to raise money. Except for motorcycle racing, there aren’t many ways to make money from this vehicle that I’m aware of, unless you’re exceptionally talented. The same can be said for less valuable items laying around the house. Have a small rummage sale to earn an extra $100 – $200, and while you’re at it, clean up some clutter around your house as well.

In order to raise money for a food cart online, crowdfunding is a viable option, especially if you have a realistic goal of raising $2,000 – $4,999 for your business. I believe that anyone can do this. If you’re not familiar with the term “crowdfunding,” it is a method of raising money from individuals through websites such as KickStarter.com and GoFundMe.com, among others. The use of both websites is completely free, but they will receive a small percentage of the contributions raised as compensation for their services.

Here and here are some examples of past successful hot dog cart campaigns that you can use as a model for your own. If you are interested in learning more about this method of fundraising, you can sign up here to receive more information.

Even though I don’t recommend raiding your retirement savings or withdrawing from a 401(k) or RRSP (in Canada) in the first instance, this may be an option for some people in certain situations. In the event that you intend to remain with your current employer for the foreseeable future, taking out a loan against your 401K may also be an option. The ability to borrow against your 401K allows you to receive cash now while paying back the loan over time through your regular payroll. You will also be able to avoid paying penalties for withdrawing your money early as a result of this.

Although it is not ideal, starting a business on a shoestring budget can be a viable option. I would also recommend that you set aside a portion of the revenue generated by your hot dog stand to pay back your 401K loan over time if possible.

Dealer Financing – In a similar vein to obtaining a car loan from a dealership, you can obtain financing for certain hot dog carts. While I would prefer that you purchase your hot dog cart outright and avoid making monthly payments, there are compelling reasons to finance the cart through a dealer when you’re just getting started with your business. Please keep in mind that you will need to inquire with the hot dog cart builder or distributor to see if the cart you’re interested in can be financed through them. Typically, lower-priced / smaller carts priced under $2,000 are not eligible for financing.

One of the primary benefits of financing is that the monthly payment on these carts is extremely low. If you purchase a low-priced, entry-level cart, you could be looking at a loan that costs approximately $2.00 per day to finance. You can get a lot of cart for less than $100 per month if you take out a loan. The second advantage is that SOME of these financing payments do not begin for 60 to 90 days after signing the contract. The ability to operate your business for a full 2–3 months before making a regular payment allows you to grow your business. In the event that you get off to a fast start, you may be able to pay off your cart before the three-month period is up.

To ensure that the terms of the financing contract are sound and that you are comfortable from a personal finance standpoint, you will need to conduct due diligence, just as you would with any other financial agreement.

For those seeking financial assistance to start, expand, or acquire a business, understanding how to write a business plan for a loan is essential. Although lenders will consider the standard factors required of all loan applicants, such as your credit history, credit score, and assets — business loan lenders, on the other hand, will also look at your business plan.

Getting a loan might require you to write a business plan

Banks and investors will want to know whether or not your business idea will be viable and sustainable. They are also interested in knowing if you have thought the business through completely and if you have the business skills and understanding required to run a successful business at all. A good business plan communicates all of these ideas to the lender.

Your lender or investors will consider all aspects of the business, including financial statements, sales strategies, and your overall financial plan, in order to determine its viability. Your financial projections are critical — a good business plan will include data from the previous several years’ worth of revenue and profits (if available). A sales and profit forecast for the next three to five years will also be provided. Lenders are also interested in learning about your company’s history, what products you sell, how your company compares to its competitors, and who your key personnel are. This information (as well as additional information) is used to assess the likelihood of your company’s success, which will ultimately allow you to succeed and make loan payments to the lender.

A business plan for a loan should be clear and understandable to loan officers, but writing a business plan for a loan can be beneficial to you as the business’s owner as well.

A well-executed business plan serves as a road map for your company’s development.

You can use the past financials and forecasts as a guide to determine whether or not you are on the right track for success in the future.

Look over at the sample business plan and business plan guide we’ve included later in our business guide.

Call us for details.

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WHY CHOOSE US

Experience

We bring decades of real-life hot dog hot dog slingin’ experience! We design carts that we have loved and used for years and are confident you will feel the same way.  

Quality

Each cart is assembled by our team of skilled craftspeople and thoroughly inspected before it leaves our manufacturing facility. 

 

Support

We are available 24/7 to support you in your new business venture. Our warranty / extended warranty are the best in the business and will give you the extra security you may need when making this exciting investment.