The Lobos Truck
Expanding A Line of Business
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Needs:
- Debt refinancing
- purchase trucks for expansion
- new revenue stream
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Custom Lending Package:
- $60,000 term loan for 24 months;
- Credit line up to $60,000
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Results:
- Paid off $150k in high-interest daily-debit loans
- Purchased a new truck
- Opened a new line of sauces that customers can purchase online
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Owner:
Jasmine and DJ
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Location:
Los Angeles, CA
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Industry:
Food & Beverages
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Year in Business:
6 years
Street food has made a significant impact on recent US food culture, and the food truck industry now generates a whopping $1.2 billion annually. As Americans continue to ride the gastronomic, mobile trend – and as professional chefs continue to open trailers of their own – the food truck movement shows no signs of slowing down.
Local Los Angeles couple Jasmine and DJ got in on the action with the launch of their own mobile restaurant: The Lobos Truck.
Deriving its name from owner Jasmine Wolf’s last name (“Lobos means “wolves” in Spanish), The Lobos Truck serves up “American comfort food with a conscience.” Jasmine and her husband DJ pride themselves on bringing the community food sourced from humanely-treated animals and organic produce. They also rely on recyclable materials and very little plastic to operate their business.
Known as one of the top food trucks in L.A. and home to the famous “Wachos” (the highly rated marriage of waffle fries and nachos), The Lobos Truck began just as many startup businesses do: they experienced challenges with capital and growth.
DJ noted, “We’re a fast growing company. Access to capital was one of the largest obstacles we faced.”
Jasmine and DJ applied to numerous organizations, spending weeks trying to find the right lender.
“We wanted to find a lender that didn’t just look at the numbers, which is only one aspect of a company.” DJ expressed the importance of finding a lender that understood the vision of The Lobos Truck, and finally chose Dealstruck:
“Finding the right financial partners was a critical decision. We wanted partners that believed in our product, and believed that we have the ability to sustain our business long term. Dealstruck was awesome in that regard. They were able to understand the upsides of The Lobos Truck, and were willing to take the risk associated with funding a new business.”
Jasmine and DJ came to Dealstruck with $150,000 in outstanding daily debit financing at APRs ranging from 50% to even over 400% – a seemingly insurmountable amount to get out from under -from CAN Capital and Cash Call. Dealstruck worked with Jasmine and DJ to customize a financing solution that would most effectively relieve their day-to-day burden, refinancing their debt with a $110,000 term loan and a $60,000 Inventory Line of Credit, at a fraction of the interest and monthly payment.
In addition to using Dealstruck’s loan to pay off existing debt, Jasmine and DJ put capital towards a new product line and a new truck. The Lobos Truck now offers four gourmet food trucks in Southern California, and recently launched a sauce line on its website where customers can buy the unique sauces used in each of The Lobos Truck’s dishes. DJ explained:
“With Dealstruck’s help, we were able to expand our line of business, offering our customers a part of The Lobos Truck that they can buy directly online – our sauce! We’re now able to evolve and grow our brand with this new revenue stream. With our new product line and our new truck, Dealstruck provided us with the means necessary to become a leading brand for our industry.”
As The Lobos Truck continues to expand both its reach and its offerings, they add to Los Angeles’ diverse and growing restaurant scene. The Lobos Truck is living proof that any small early-stage business can overcome financing difficulties to become a market leader. Given access to necessary means, the Lobos Truck has continued to innovate and has evolved into a recognized name in the industry, featured in BuzzFeed and LosAngeles.com, and ranking #1 in the search for Los Angeles’ Best Food Trucks.
