Billboard loan and lease repayment terms vary from 3 to 20 years. 3-7 years is normal for lease financing and digital sign financing. The most advantageous leasing tax treatment occurs only if a lease has a term of less than 75% of an asset’s life. That means a lease of […]
Is is better to finance your billboard or digital sign with a bank loan or with a financing lease? It depends on your objectives. A billboard loan is better if: You want long term financing (10 years or more). Billboard loans have terms of 10-15 years versus a 5-7 year […]
What does it cost for finance your billboard company? Equity providers want to a return of 15-25% per annum with an ability to realize the return over a five year period. Lamar’s public dividend REIT is trading at a 6.33% dividend yield. Outfront Media’s REIT is trading at a 5.52% […]
Lots of companies want to fund your billboard or digital sign by providing lease financing. The benefits of leasing include 100% financing and sometimes a lack of a personal guarantee. Billboard financing leases often have three big drawbacks: (1) You don’t know how much the lease costs. I once had […]
There are several finance companies which make billboard equipment leases. They are anxious to tell you that leasing will save your capital by allowing you to finance 100% of the cost of the sign. None of them talk about prepayment penalties. Lease prepayment penalties can kill you. It’s normal for […]
A personal guarantee is a requirement for almost every loan I do. 20 of our 22 existing loans require personal guarantees. The only two borrowers who don’t guarantee are non-profit companies where no single person is in charge. I’ve also sometimes made loans without a personal guarantee when a borrower […]
I often I pick up the phone and have a conversation goes something like this. “Hi, I want a billboard loan. What’s your rate?” The borrowing rate is an important part but it isn’t the only thing that matters. I’ve had customers chase rate and then get in a liquidity […]
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 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.
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 […]