My company makes loans and investments in the following sectors: outdoor advertising, radio, tower and catv. The outdoor advertising business is my favorite lending and investing sector. Here’s why. First, there are barriers to entry in the form of restrictive building codes which keep competitiors out. Second, the outdoor advertising […]
Billboard Loans Blog
Financials for a stand-alone billboard.
I’ve summarized below the proforma financials for a 14 by 48 billboard which is in a good location. Revenue of $1,500/month if the billboard is one sided. Rents can be higher if the billboard is next to a freeway in a big city and lower if it is on a […]
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 […]
Good and Bad Billboard Leases
Have seen lots of billboard leases over the past 20 years. A bad lease can make it difficult to get financing or ruin your business prospects. What’s in a good billboard lease. 1. A term of at least 20 years with optional extensions. 2. Assignability to someone else without consent. […]
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 […]
Must I personally guarantee a billboard loan?
I take a personal guarantee from the controlling shareholder/manager of any borrower. A personal guarantee has two functions. First, a personal guarantee tells a lender that you are so confident in your business’s prospects that you will be personally liable for the business loan if there are difficulties and there […]
Can I Get 100% Debt Financing
I wish I had a dollar for every request I get for 100% debt financing for a billboard. Lenders don’t make 100% loans against anything. They want to know there’s cushion in the collateral in case something goes wrong. Next time you decide you need to do 100% financing for […]
What are my billboards worth?
Borrowers are constantly asking me what their signs are worth. My rule of thumb is that billboards are worth 4-6 times annualized gross revenues. The transactions which I have financed over the last 10 years have occurred at multiples ranging from 3 to 6 times gross revenue with a median […]
