From time to time we get asked what sectors we lend to. Billboard loans makes loans to:
- out of home advertising companies which operate a billboard bulletin or poster plant.
- digital billboard companies.
- transit advertising companies
- 8 sheet companies which operate small billboards.
We avoid the following loans:
- Radio station loans.
- Newspaper loans.
- Magazine loans.
- Loans to companies with a one of a kind business model.
- Emerging alternative out of home companies (e.g. digital billboard boats, signs on rooftops to be viewed by airplanes, movie theater ads, restaurant ads, digital signs in doctors offices, gas station advertising)
- Loans to people who want 100% financing.
We avoid other media besides out of home because of declining revenues and a weak transactions market in which there is no certainty that collateral is liquid.
We avoid loans to emerging alternative out of home because we won’t know how to fix a company if it’s broken and we won’t know how to run a borrower if we have to foreclose.
We avoid doing 100% financing because we have had a poor experience with borrowers who do not have skin in the game.