The rate you pay on your billboard loan will vary depending on the funding source.
If you get a bank loan you can expect to pay prime plus 2% with a floor on your rate at 5.25%. Bank financing is very difficult to get because banks are not comfortable with the industry.
If you get a loan from a private lender like me you can plan to pay prime plus 6%, floating with a floor on the interest rate at 12%. Private lenders are more comfortable with the outdoor industry than banks but do not have access to cheap bank deposits to fund loans so they are more expensive.
If you get a lease you can expect to pay 8-18% in financing costs. Most leasing companies make it hard to tell exactly what your financing cost is. If you ever want to know the true cost of your lease give me a call and I can calculate it by running some simple financial calculations.
