In our series on out of home lenders we’ve featured Alerus Financial and Stark Capital. Today we profile YESCO Financial solutions which provides lease financing to out of home companies.
Out of Home Lender: YESCO Financial Solutions
Address: 1605 Gramercy Rd, Salt Lake City UT. 84104
Email: Tony Hull: thull@yesco.com Steve Burt: sburt@yesco.com.
Phone: 888-897-9244
YESCO Financial Solutions provides lease financing for out of home companies. Billboard Insider talked with Tony Hull, President, YESCO Financial Solutions.
What’s new at YESCO Financial Solutions over the past year?
At YESCO, we love working with independent billboard operators! That’s likely due to our history of more than 60 years operating our own billboard plant in the Intermountain West (Utah, Idaho, Wyoming, Montana, Eastern Nevada). Incidentally, we don’t provide financing within that footprint, but have expanded our finance offering to include the rest of the US and Canada.
What size leasing transactions will you do?
We look at transactions from $100,000 and up. We’re well suited for new development projects of single location, double-sided digital billboards; replacement of existing digital faces; or conversion of static to digital. We will finance multiple locations for a single borrower but try to keep our total customer exposure at a maximum of $2-$3 million.
What are your typical leasing terms?
We structure most of our deals on a 5-year term with amortization periods of up to 10 years. All our rates are fixed for the full 5-year term. We offer optional interest-only payments during any sort of ramp up of a new billboard site. As a non-bank lender we pride ourselves on being fast and flexible. We prefer outcomes that fall into the cliché “win-win” category. As an example, we closed a transaction last week that took less than 10 calendar days from the time I took the initial call from the Customer to the day we funded.
Do you require a third-party appraisal?
No. YESCO has a long history as an independent billboard operator through our sister company, YESCO Outdoor Media. We feel confident in our ability to evaluate a transaction and establish the amount we’re willing to lend without requiring an appraisal.
What trends are you seeing in the financial and out of home markets?
We see traditional commercial banks remaining tight with credit. Especially larger regional banks or smaller banks with exposure to commercial real estate. We’d love to see long term rates drop this year, but recent economic indicators aren’t supporting that likelihood as strongly as they were in Q1. And yet, we remain continually impressed by the entrepreneurial spirit and creativity of OOH operators and their ability to find new sites in attractive markets.
To learn more about YESCO Financial Solutions and how it can help your company grow, contact Tony Hull or Steve Burt at thull@yesco.com or sburt@yesco.com.
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