ForumsLegal and Insurance

I may be able t help. How much funding are you looking for?

Monique@accuratefinancial.info

Couple of comments:

First, with such a low credit score, you will be hard pressed to find any lender willing to take a chance on you.

Second, the cash flow - even if you get 100% for the advertising, is not enough to support a loan of the size you are looking for. Especially, since ad spending is down in this market (why, for the life of me I can't understand why companies would cut advertising in any market).

Lastly, if you could have contracts on these spaces in hand, it would tremendously help you secure some financing. Thus, lenders would look at the credit of your customer more than your credit - usually termed purchase order financing or accounts receivable factoring.

I have been in the billboard industry in Florida for several years, and would like to inform you that if billboard companies are offering 30% of gross collected revenues, that is a deal worth taking. At that land lease level, you would fair as well if not better than the billboard company. If they are making the investment to build the sign, they will be looking at 20%-30% of their revenues going toward financing, 5%-10% going to sales commision, 5% going to admin., 5% illumination, and 30% going to land lessor (you). Their margins on a particular sign would be around 20%-25%, taking into consideration an average occupancy level. Considering you will be taking on no risk financially, if you do not personally build the sign, this is a great return and will provide a nice residual income.

In regards to your a recent post about personal credit translating into a corporation, your personal credit record will certainly have an effect on if a bank will lend to you. They will be looking for a personal guarantee, unless you have a long standing business, with strong profits. The great think about the industry is that quite a bit of the value of the sign is in the land lease and permit (as well as the sign (asset)), therefore, an educated bank will usually lend a large amount of the requested loan amount with little collateral when compared to other industries. There are other alternatives; niche lenders. There are several lenders who specialize in the industry who will lend 100%, with no collateral other than the lease and permit, but expect to pay 12%-18% interest.