I take several phone calls a week from people seeking billboard loans. Some callers are much more organized and professional than others. Here’s a seven sentence script which will make you sound like a pro during your initial conversation with a billboard lender. “(1) Hi, I’m (your name) from (your […]
Billboard Lending
Billboard financing and radio station financing powerpoints added to www.billboardloans.com website.
You can access a radio station financing powerpoint Dave Westburg presented to the NAB leadership Development Program in November 2013 by clicking this link You can access a Billboard financing powerpoint in which Dave Westburg discusses billboard industry issues and billboard financing trends by clicking this link.
Sources for Billboard Loans
There are three sources for billboard loans: niche finance companies, sign vendors and banks. I will discuss the pros and cons of each source. Niche finance companies such as Billboard Loans or Stark Capital specialize in one or two industries including billboards. Pros: (1) Niche lenders know the industry […]
Lending Standards Easing
The federal reserve surveys senior bank credit officers four times a year about whether their lending standards are tightening, stable or easing. Here’s a table summarizing the trend in bank lending standards for small businesses over the past 10 years. The table shows that after tightening during the three years […]
The impact of loan fees on a billboard loan’s cost.
What Businesses Benefit Most From Billboards Just read a blog post titled Billboards for Small Businesses: 7 Reasons To Think Twice. The post is skeptical about billboard advertising: billboards are expensive, they created unwanted calls from sales reps, they have a limited run and they can’t be personalized. The article […]
What outdoor advertising deals are hard to finance
I’ve made lots of out-of-home advertising loans over the past 15 years but there are several portions of the industry I avoid, including: Loans to floating billboards. Loans to finance vehicles with billboards on them. Loans to finance gigantic advertisements on fields outside airports which are capable of being viewed […]
Billboard Loan Collateral
A billboard lender will secure a billboard loan by taking a UCC-1 filing on cash, inventory, equipment and intangibles, an assignment of your material agreements (think ad contracts and leases) and a pledge of stock in your company. If you own land under your signs a lender will probably also […]
Billboard Loan Fees
Here’s a rundown on the kinds of fees your can expect to pay when you borrow money to finance a billboard. Loan Fee – This is typically 1-2% of the loan amount. It is paid at closing to compensate a lender for the time spent to underwrite a loan. Banks […]
Billboard Loan Interest Rates
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 […]
Billboard Loan Repayment Terms
I have seen billboard loan amortization rates as short a 5 years and as long as 20 years. 5-7 year amortization is not unusual with bank or lease financing. It is have for many small billboard companies to completely pay off their debt in 5 years. 10-20 years amortization is […]
