Golf Course Management

JUL 2014

Golf Course Management magazine is dedicated to advancing the golf course superintendent profession and helping GCSAA members achieve career success.

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Page 62 of 122

58 GOLF COURSE MANAGEMENT 07.14 The golf season may be in full swing in most parts of the country, but once it reaches the downswing, superintendents will be turning their at - tention to acquiring the equipment they need to facilitate the smooth op- eration of their golf courses. Financing and leasing are popular methods to fund turf maintenance and irrigation equipment. Understanding these methods, their advantages and challenges, can go a long way in setting up your business and your course for success. While current interest rates are still at historic lows, many market ana - lysts and economists are predicting interest rate increases as early as the spring of 2015. And with so many golf courses having held off on major equipment decisions during the economic slowdown, there is now signif - icant pent up demand for new golf course turf maintenance and irriga- tion-related equipment. No doubt, if your facility falls into this category, now is the time to take advantage of historically low rates. U.S. Federal Reserve Policy is tightening, with the new Fed chairman cutting back on monthly bond purchases, which will drive interest rates higher. Here are a few tips to consider when making your equipment financ - ing decision. Special financing terms Check with the equipment manufacturer for special fnancing terms. In an effort to increase market share, many turf equipment and irrigation vendors will offer a wide variety of incentives for spring/summer deliveries. These incentives include zero or below market interest rates, delayed payments, skipped pay - It's possible to combine different manufacturers' products in the same fnance package. Most major manufacturers will extend a warranty on used equipment their technicians have refurbished. GCM fle photos ments or extended terms. In some cases, free goods or maintenance packages may also be available. Lower rates and delayed terms help stretch your equipment budget, making it easy for you to acquire more equipment. When you receive an equipment quote, inquire about spe - cial fnancing terms. Your dealer may have a particular model they are trying to move or a leftover machine from the previous year that would qualify for a special offer or discount. Package your deal Don't hesitate to combine different manu - facturers' products in the same fnance pack- age. If you prefer a specifc manufacturer for a given task, such as fairway mowing, and an - other manufacturer for your greens and tee box equipment, your preferences can be easily in - corporated into your contracts. Don't forget to bundle ancillary assets such as reel grinders and other maintenance tools needed in your shop in your fnancing solu - tion. The best equipment fnanciers have the 056-061_July14_Equip.indd 58 6/17/14 2:30 PM

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