Food truck and mobile catering finance

Yes, although a horsebox conversion is harder to fund than a purpose built catering van because its resale value is less certain. Lenders look at who built it, the condition of the box and chassis, your bar or events experience and the bookings already in the diary. Where a lender will not fund the conversion on asset finance, an unsecured business loan may cover it, and coolers, dispensers and the coffee machine can sometimes be funded separately. We search the market for mobile bar and coffee box operators.

What helps a horsebox bar application

• The build paperwork. The converter's invoice and specification, photos, and the identification number of the trailer or vehicle.
• A season of bookings. Weddings, private parties and festival pitches already confirmed, with deposits taken.
• Weight and towing. The plated weight and details of the vehicle that will tow it.

Do I need a licence to sell alcohol from a horsebox bar?

Yes. In England and Wales each sale of alcohol needs cover from a premises licence for the place you trade or a Temporary Event Notice. GOV.UK's Temporary Event Notice rules allow events of fewer than 500 people at all times, lasting no more than 168 hours, for a £21 fee. You can give up to 5 notices a year, or 50 if you hold a personal licence, and each premises is limited to 15 notices covering 21 days a year. Many festivals and wedding venues already hold a premises licence, so ask the organiser how bars trade on site. Instant Quotes lists panel lenders that may fund the unit, with no credit search.

With a short facility drawn in spring and repaid from summer takings. Event organisers often want pitch fees months ahead, and stock, gas, staff and fuel all come before the first busy weekend, so even a trader with a strong season behind them can be short of cash in March and April. A revolving credit facility, a short working capital loan or a merchant cash advance repaid from card takings can bridge the gap. We arrange these for street food traders with a trading record.

Making the case to a lender

• Takings by event. Card terminal reports for last season show what each pitch actually earned.
• Confirmed pitches. Booking confirmations with fees, dates and the organiser's refund terms if an event is cancelled.
• A cautious forecast. Allow for a washed out weekend rather than assuming every event sells out.

Do I need a street trading licence for a food van?

Usually, if you trade in the street, but the council decides. In England and Wales you apply to the council for the area where you want to trade and say where and when, and GOV.UK's street trading licence page explains that councils can refuse, grant fewer days than you asked for or keep a waiting list. Trading without a licence, or breaking its conditions, can lead to a fine of up to £1,000. Instant Quotes shows which panel lenders may fund your pre season costs, and your credit file is not touched.

Income comes from several channels with very different risk. Regular street pitches and markets give steady but modest takings and a weekly pitch fee. Festivals and large events can produce a season's profit in a few weekends, but organisers charge a fixed fee, a percentage of takings or both, and a wet weekend can turn a big event into a loss. Private hire for weddings, parties and corporate events is booked in advance with a deposit, and is often the most profitable work because the margin is known. Winter work at Christmas markets and indoor venues is what keeps repayments covered from November to March. Lenders look for a mix; reliance on a handful of summer festivals reads as risky.

You must register as a food business with the council where the unit is normally kept, at least 28 days before trading; the Food Standards Agency explains this in getting ready to start your food business. Trading in the street usually needs a street trading licence or consent from each council you work in. LPG systems need checking by a Gas Safe registered engineer, and many event organisers will ask to see the certificate before you can set up. Public liability insurance, a generator or electric hook-up, and waste water disposal all add cost. Our page on events business finance looks at the organiser's side of the same events.

A unit financed over five years must earn through five winters. Borrow against realistic takings, not a festival best case. A breakdown stops all income, so keep a repair fund, especially on older vans. Avoid stacking a merchant cash advance on top of asset finance in your first season. If credit is the obstacle, see our guide to bad credit asset finance; buying a cheaper used trailer outright and financing only the kit is often the safer first step. Shop-based fryers should see our page on fish and chip shop finance.