Mobile catering is one of the cheaper businesses to start, but you will still need some money up front for your unit, equipment and opening stock. Here are the realistic ways to fund it, with the pros and cons of each, including what I did myself.
Funding a catering startup
The money side, at a glance:
Sources: Start Up Loans / British Business Bank; MobCater startup-cost estimates. Correct June 2026.
Bank loan
The first option most people consider. Banks are cautious now, so without a solid credit history and a good relationship it can be hard going. Shop around and compare rates rather than taking the first offer; comparison sites make this easy.
Credit cards
An obvious route but one that can get out of hand fast, so keep a tight rein. If you do use one, keep a separate card for business spending so your records stay clean for the accounts.
Borrowing from family and friends
An undervalued option, especially if a bank will not lend or your credit is poor. Keep it legitimate: put a simple written loan agreement in place setting out the amount, the term and the repayments. It shows you are serious and reassures the people backing you. A solicitor can draft one cheaply if you want it watertight.
What I did to raise my money
When I needed money to get going, I asked a family member and a friend to lend it to me. I showed them my business plan so they could see I was serious and that their money was safe, and we agreed the amount and the monthly repayments up front. The best part was paying them a little interest each month as a thank you. Why hand it to a bank when you can give it to people who helped you? A win-win.
The government Start Up Loan
If you would rather not use a bank, the government-backed Start Up Loan lets you borrow £500 to £25,000 at a fixed 6% (7.5% from April 2026) over one to five years, with 12 months of free mentoring. It is unsecured and built for new businesses. More on our grants and funding page.
Council and government grants
You may be eligible for a local council start-up grant or a low-interest loan, as many councils run them. Check your council’s website and the GOV.UK finance finder. Full list on our grants page.
This page is general information, not financial advice. Figures and rates are correct as of June 2026 and can change, so check the official sources for current terms.
Budget it properly before you spend a penny
Most people guess what starting costs, and find out the hard way. The app’s Startup Cost Calculator itemises the lot for your setup, vehicle, kit, gas checks, insurance, licences and working capital, and saves your figures so the plan sharpens as real prices come in.
Try the Startup Cost CalculatorCalculators come with the Toolkit (£5.99/mo) · the 12-step guide is free forever, no card needed
Frequently asked questions
What is the cheapest way to fund a catering startup?
Your own savings or an interest-free loan from family, kept formal with a simple written agreement. Mobile catering's low entry cost (from around £2,000) means many avoid commercial borrowing altogether.
Can I get a government loan to start a food business?
Yes, the Start Up Loan scheme offers £500 to £25,000 at a fixed 6% (7.5% from April 2026) with free mentoring, run through the British Business Bank. It is one of the most accessible routes for new caterers.
Should I use a credit card to start my business?
It is possible but risky: interest is high and debt builds fast. If you do, keep a dedicated business card and clear it quickly. A Start Up Loan or family loan is usually cheaper and safer.