Welcome to this issue of Digital Display Insider! In this issue, we will be giving you valuable information as you navigate the mobile digital billboard (M.D.B.) startup process.

This week, we’re tackling one of the most critical topics for new operators: financing your first MDB truck. Securing the right funding can be a challenging process, especially with the unique hurdles of valuing LED trucks. In this issue, we’ll break down five financing options—covering the pros and cons of each—to help you choose the path that best fits your business and goals. Whether you’re just getting started or looking to grow, this guide will ensure you’re making informed decisions when it comes to funding your business.

Financing Your MDB Business: Smart Strategies to Manage Costs and Grow

One of the biggest hurdles for new mobile digital billboard (MDB) operators is securing financing for their first LED truck. Unlike traditional vehicles, LED trucks don’t have third-party valuation systems like Kelley Blue Book (KBB) or NADA to help banks determine their value. This lack of standard valuation often means that traditional lenders are cautious, offering to loan only a fraction of the truck’s cost unless the buyer has additional collateral or a strong history with the bank on large loans.

Despite the challenges, there are several options available for financing a mobile digital billboard truck. Each has its pros and cons, and the right choice depends on your financial situation, business experience, and goals. Let’s explore these options so you can make an informed decision.

1. Traditional Bank Loans

Traditional bank loans are often the first option people consider. If you have a strong relationship with your bank, this route may provide favorable interest rates and loan terms. However, most banks are hesitant to lend the full amount for an LED truck. Without a clear valuation system for the equipment, banks may require additional collateral, like property or other high-value assets, to secure the loan.

The advantage of traditional loans is their lower interest rates compared to other financing options. But for new operators without a proven track record or significant collateral, securing a traditional loan can be difficult. If you’ve been banking with the same institution for years and have a history of repaying large loans, this option might work for you.

2. SBA Loans

Small Business Administration (SBA) loans can be a great alternative for new operators who meet the requirements. These loans are partially guaranteed by the government, which reduces the risk for lenders and can result in better terms for borrowers. SBA loans often allow for longer repayment terms and lower interest rates than traditional loans.

​The downside is that the application process can be lengthy and paperwork-intensive. You’ll need to provide detailed business plans, financial projections, and personal financial history. Additionally, SBA loans often require a significant down payment and may still demand collateral. However, for operators who meet the qualifications, SBA loans can be a powerful tool to kickstart their business.

3. Investors

For those who don’t qualify for traditional or SBA loans, bringing in investors can be an attractive option. Investors can provide the capital you need in exchange for a stake in your business or a share of future profits. This can help you get started without taking on debt or risking personal assets.

​The key to success with investors is finding people who believe in your business and your ability to execute. Be prepared to pitch your business plan and clearly outline how they’ll see a return on their investment. The downside is that you’re giving up a portion of your business or future profits, so consider this option carefully.

4. Hard Money Loans from Family or Friends

This was my personal solution when I started with my first two or three LED trucks. I approached individuals who had money and were looking for better returns than the stock market. I offered them a loan at 14% interest, amortized over seven years with a three-year balloon payment. This allowed me to start my business without the strict requirements of traditional financing.

​While borrowing from family or friends can be faster and more flexible, it’s not without risks. Mixing personal relationships with business can strain even the strongest bonds if things don’t go as planned. To avoid misunderstandings, put everything in writing—loan terms, repayment schedule, and contingencies if you can’t make payments. Transparency is key to maintaining trust.

5. Equipment Financing Providers

Equipment financing providers specialize in lending for business assets like LED trucks. They’re often more willing to fund these purchases than traditional banks because they understand the value and use of the equipment. However, they have strict requirements. Most providers require:

​The upside is that equipment financing providers are familiar with the MDB industry and can process applications more quickly than banks. The downside is that they often charge higher interest rates and shorter repayment terms, which can make monthly payments more expensive. However, for operators with the right qualifications, this can be a viable option to acquire their first truck.

The upside is that equipment financing providers are familiar with the MDB industry and can process applications more quickly than banks. The downside is that they often charge higher interest rates and shorter repayment terms, which can make monthly payments more expensive. However, for operators with the right qualifications, this can be a viable option to acquire their first truck.

The Bottom Line

Financing an MDB truck isn’t always straightforward, but there are options for every situation. Whether you choose a traditional loan, SBA financing, investors, family and friends, or an equipment financing provider, the key is to understand the terms and ensure the financing fits your business plan.

​If you’re unsure which path to take, hiring an industry expert to guide you can make all the difference. The cost of not getting your financing right—whether through high-interest payments or underfunding—can far outweigh the expense of consulting someone who knows the landscape. The right strategy today can save you thousands tomorrow and set your business up for long-term success.

Jerry Teeter LED Truck Consulting www.jerryteeter.com/consulting

When it comes to LED technology, pixel pitch is everything—especially for indoor applications where viewers are up close. Ultra-fine pixel pitch displays, with pitches of P1.5 or smaller, offer unparalleled clarity and detail, making them perfect for environments where image quality and scalability matter most. Unlike traditional TVs, these displays are built using modular LED panels, allowing them to be constructed in virtually any size, from small conference room screens to massive, wall-spanning displays. And with resolutions as high as 4K, they deliver stunning visuals that rival the best television technology.

One of the biggest advantages of ultra-fine pixel pitch displays is their ability to handle detailed content, like product videos, intricate designs, or presentations with small text, without losing sharpness. They’re often used for luxury retail displays, corporate lobbies, and indoor event stages, creating an impressive visual experience that draws attention and leaves a lasting impression. These screens are also popular for trade show booths and command centers, where clarity and precision are non-negotiable.

By combining unmatched resolution, scalability, and LED durability, ultra-fine pixel pitch displays provide a flexible solution for businesses that demand the absolute best in visual technology. Whether you need a 4K display for an executive boardroom or a large, custom-sized screen for a high-profile event, this technology offers a level of customization and performance that standard TVs simply can’t match.

When we were hired to help Fairway Market promote a new store opening in Brooklyn, NY, we knew it was going to be an exciting five-day campaign. What we didn’t know was that it would also turn into one of the most bizarre driver experiences we’ve ever had. The driver, who came to us through a temp agency, was new to the world of LED trucks—and it quickly showed.

On the first day of the job, the driver called me to report an issue with the screen. I walked him through pulling over so I could remotely access the computer and make adjustments. I told him I would need to temporarily shut off the screens while I worked and instructed him to restart the computer once I was done. Simple enough, or so I thought. I didn’t hear back from him the rest of the day and assumed everything was fine.

The next day, when I tried to remotely log in to the computer to grab proof-of-performance (POP) pictures, the system showed as offline. I assumed it was an issue with the cellular internet modem and planned to circle back later. By Day 3, when the computer was still offline, I called the driver and asked him to find a spot with Wi-Fi so I could troubleshoot. That’s when he casually dropped the bombshell: “I didn’t take any pictures because the screens haven’t been on since the first day. You didn’t tell me to turn the computer back on, so I didn’t think it was necessary.” He had been driving a blank LED truck around Brooklyn for two full days without questioning it once.

I booked a flight to New York that night, determined to salvage the campaign. The next day, I personally took high-quality photos for the client, extending the campaign by four additional days—two to make up for the missed time and two as a goodwill gesture. The experience was a costly reminder of the importance of hiring drivers who are not only reliable but also tech-savvy. It wasn’t long after this incident that we stopped using temp agency drivers altogether and started offering higher hourly rates to attract experienced, technology-literate drivers. Sometimes, paying more upfront saves you a lot of trouble in the long run.

Want more information about this topic from industry expert, Jerry Teeter?  Join our free Digital Display Insiders Facebook Group where Jerry releases a more indepth Bonus Video each issue.  Click the thumbnail below to watch the video.

VIDEO TRANSCRIPT
​Hey insiders, welcome to another issue of digital display insiders bonus video, where we're digging deeper into the D O T and how that's going to affect your business. As a mobile digital billboard operator. Now I want to thank you again for your support and just thank you for watching these videos. If you find this information helpful, please hit the like button below this video.

So it will tell me if I'm producing content that you like. So again, thank you for your support and let's go on ahead and dive into this week's bonus video. Now the DOT this is something that most people don't realize that it needs to be part of their planning until oftentimes it's too late or after they get into the business.

And they've run into some issues. One thing that you have to remember, and this is all part of the article, is that if your chassis, the vehicle part of your truck, if that's rated by the manufacturer of 10, 001 pounds or higher, or if the actual weight of the truck is that same weight, 10, 001 pounds or higher, if either one of those two things are true, then you have to register for a USDOT number.

Now, this is crucially important because if you get into this business, you start operating a truck. And your truck needs to have a DOT number. And it doesn't at some point, if you're ever involved in any type of an accident if you're traveling outta town and you get pulled over pulled into a way scale, or if you just get pulled over by a carrier enforcement, highway patrol officer and they run and find that you're not complying with this, the fines are huge and it's not something that you want to get into.

So it's better to come outta the gate and be in compliance. And know everything you need to know from the start. So I just want to walk through a couple of things here. Whether you need to do this or not, and that way you can make the best decisions for your business. Now, as I mentioned earlier, you have those two factors your actual weight or the registered weight of the vehicle, if either of those are over 10, 001 pounds and you have to get into DOT.

Now, what does that actually mean? The DOT has a wide range of regulation. And for the most part, you're going to be treated like a trucking company. Now, because these trucks are under 26, 000 pounds, you're not going to have the full blown compliance requirements that a full trucking company that's running the big rigs is going to have.

But there's still a number of things that you have to have. First of all is You have to put a D. O. T. number on the truck. You have to register with the U. S. D. O. T. It's a free process and you can get the number but you have to put that name that number on there along with your company name And the city of state where you're located you're going to have your drivers run medical cards.

So every two years they have to go get a physical and have a medical card on their person. Anytime they're driving the truck they're, you're going to be subject to hours of operation. It's called HOS or hours of service. Your drivers can only operate a certain number of hours each day. If they're running under a hundred miles or if they're going over that, they actually have to keep actual And in today's world, you have to have electronic logging systems in your truck.

You have to have a driver qualification files. So every single person that's going to drive that vehicle has to have an official file that has all kinds of different requirements, such as a pre pre hiring driver inspection, where you have to go out and do a driver's test. The medical card there's just all these different things that you have to have in their driver qualification file.

And anybody that drives that truck. Has to have one of those files on hand and there's numerous other things that you have to have, but those are just the highlights and it's just a it's a lot of work to stay in compliance and every company that goes through a D. O. T. Process of getting the number at some point, you're going to get an audit and if you don't have everything in check, then the fines that can come with that it's almost equivalent to going through an I.

R. S. Audit. When they do these audits, they don't do them free of charge and they will find something that you're in violation of, and it's not a matter of if you get fined, it's how big is that check going to be that you write. The best thing is just to be 100 percent in compliance and make sure that you're doing everything you need to do.

Now, the easiest way to not have to deal with any of this is to buy an LED truck that does not require a license. The dot under 10, 000 pounds and really on the market today. There's not a lot of options for that. Like I said most One ton chassis and above are in that dot category. There's only a few trucks out there that aren't and so I know Some of the trucks that you see the shorter ones, so I believe they're running like a six by ten side screen that are on like three quarter ton chassis Those are probably going to be okay, but you're going to have a smaller truck.

As far as I know the trucks that we build at legion led trucks, we special order those chassis from Ford to be at 9, 950 pounds rated weight. And so they're under that our actual weight is under the 10, 000 pounds as well. And we're running the 6x13 screens, so as far as I know right now our trucks are the only ones with screens of that size that have that that don't require that DOT.

A lot of the chassis out there they're registered at 10, 300 or 10, 600, so they're just barely over that. But at 10, 001 pounds, it doesn't matter if you're 10, 002 pounds, then you're into DOT. And I hope this makes sense. If you have any questions or if I haven't covered anything that you're specifically have questions about, feel free to reach out to me either through comments below, or you can send me an email at jerry at led trucks.com and I'll make sure and respond to those. So again, thank you for your support and we will see you next week.

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