Out Of Home Today is the leading source for news and information on the out of home industry.

- Advertisement -

How might the current banking “crisis” affect the billboard industry?

Putting up new digital billboards using a bank loan

0 280
Message for Movia Media


Tony Hull President YESCO Financial Solutions


There were no bank failures in the United States in 2021 or 2022. The last time we went two years with no failures was 2005 and 2006. For those connected to the banking industry, it was pretty alarming to see the 2nd and 3rd largest bank failures in U.S. history take place in early March 2023.

(U.S. bank failures by year. Source: FDIC)

And while things have calmed down a little in the last few weeks, if you’re not connected directly to the banking industry, why should you pay attention? Assuming you’ve already executed a strategy to make sure your deposits are held in accounts safely protected by the FDIC, how might this “crisis” affect your OOH business?

First, the potential for a recession has increased, which could affect advertising budgets.

Nearly 40% of all business loans in the U.S. are provided by small and medium sized banks; and they were already tightening. The panic from those two bank failures in March caused investors to scrutinize small and medium size banks for the same potential risks. As bank stocks lost 30-70% of their value over the course of four days, depositors began to shift portions of their money to larger banks. Setting aside the impact of increased oversight, smaller banks are being forced to tighten credit standards in order to slow lending so that they can rebalance their capital ratios. Historically when lenders pull back, business and consumer spending slows down, and the risk of recession rises.

Steve Burt, Business Development for YESCO Financial Solutions

Second, it will likely now become more difficult for you to get capital from the banking industry.

If you’ve been planning to replace an aging digital face, or put up new digital billboards using a bank loan – this “crisis” will make things more challenging. Consider taking steps now to strengthen your existing bank relationships. Keep your banker (or even better, the bank credit officer), up to speed on your capital needs in 2023.

You might also consider developing relationships with non-bank lenders, like YESCO Financial Solutions, that don’t rely on deposits for funding and underwrite digital billboard loans based on their many decades of experience in the OOH industry. Steve Burt, Business Development for YESCO Financial Solutions, will be in Houston for the Spring IBO conference next week. Send him an email or text message if you’d like to arrange a time for a quick introduction.

For the LOVE of OOH and the FDIC! Please subscribe



- Advertisement -

- Advertisement -

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: