As the logistics industry grows in Canada, the need for truck yards and terminals is also increasing. These facilities are essential for the storage and transfer of goods, making them a crucial component of the supply chain. However, obtaining financing for land to build truck yards can be challenging. That’s where land loans come in. In this article, we will explore what land loans for truck yards are and how they work.

Land loans for truck yards are loans designed specifically for the purchase of land to build truck yards or terminals. These loans are similar to other types of commercial real estate loans, but they often have different requirements and terms. Land loans typically cover a shorter period than traditional commercial real estate loans and have a higher interest rate.

When considering a land loan for a truck yard, it’s important to understand that lenders will be looking for specific criteria to ensure that the property is a suitable investment. One of the most crucial factors is the location of the land. Truck yards require easy access to highways and other transportation infrastructure. Therefore, lenders will look for land in areas with good transportation connectivity.

Another important factor is the zoning of the land. The property must be zoned appropriately for commercial use, and specifically for truck yard or terminal use. Lenders will also look for other essential infrastructure such as water, sewer, and electricity. In some cases, they may also require environmental assessments to ensure that the property is not contaminated.

It’s also essential to have a solid business plan when applying for a land loan for a truck yard. The lender will want to see a plan that outlines the projected income and expenses of the truck yard, including the potential for growth in the industry. They will also want to see that the borrower has experience in the logistics industry or has partnered with experienced operators.

Working with a commercial mortgage broker, such as GILKO CAPITAL, can be beneficial when applying for a land loan. They have experience in securing financing for commercial real estate and can guide borrowers through the application process. They also have access to a network of lenders and can help borrowers find the best loan terms and rates.

In conclusion, land loans for truck yards are essential for the growth of the logistics industry in Canada. To secure financing, borrowers must have a solid business plan, find land in suitable locations, and work with experienced lenders and brokers. With the right preparation and guidance, borrowers can successfully obtain financing to build truck yards and contribute to the Canadian supply chain.