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.

Issue link: http://gcmdigital.gcsaa.org/i/335642

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07.14 GOLF COURSE MANAGEMENT 61 Do not underestimate the opportunity cost of equipment that is not functional when con - sidering the expense of keeping old, worn-out equipment operational. Consider the fact that larger organizations may be able to reduce headcount by purchas - ing new equipment and relying on warranties to repair malfunctions as opposed to tapping in-house employees to fx equipment that con - tinuously breaks down. New equipment typi- cally comes with a warranty that eliminates, or greatly reduces, the cost to maintain the asset early in its life. Also consider converting a portion of your maintenance budget to fnance payments. For every $100 per month redeployed from your maintenance budget to an equipment pay - ment, approximately $5,300 in new equipment can be fnanced on a 60-month full-payout lease. Consult your fnance specialist to de - termine what your club can afford with a set monthly payment. Negotiate the terms Negotiate the fnancing terms of your new equipment purchases as diligently as you in - vestigate the equipment itself. As an expert in the maintenance and aesthetics of your golf fa - cility, your choice of turf maintenance equip- ment is based on a number of relevant factors, including perceived value, quality of the func - tion performed, durability and reputation of the manufacturer. You spend many hours re - searching product specifcations, participating in demonstrations of new products and ask - ing opinions of your maintenance staff. After your analysis, you choose the equipment that best suits your individual needs — so why not spend the time researching the best ways to ac - quire it? Your decision on the provider of leasing or fnancing services is no less important than your choice of equipment, and requires your due diligence. Take the time to compare dif - ferent lease and loan proposals, shopping for the terms that are most attractive for your or - ganization. Just as there is no one set price for a piece of equipment based on options and extra features, lenders offer a wide variety of terms and conditions that can be customized to meet your exact specifcations. Don't pay for features such as skip pay - ments or extra insurance if these attributes are not important to your facility. If you are not familiar with the terminology or conditions of the fnancing proposal, don't hesitate to ask your fnancial provider for guidance. They're there to answer your questions. For additional assistance, consult with your organization's club manager, controller or fnancial offcer. No matter what type of equipment you prefer, leasing and fnancing can make your acquisitions more affordable when stretching budgets is important. Take the time to explore fnancing options that will reduce your cost of use, including the negotiation of the terms of your contract. Most importantly, don't feel you are alone in navigating these fnancial decisions. Your organization has fnancial professionals that can assist you in your efforts to obtain the best equipment and the best fnancing package for your needs. A veteran of more than 30 years in the golf fnance busi- ness, Bill Loots is the originations leader for the golf equip- ment fnance team of EverBank Commercial Finance, a subsidiary of EverBank. EverBank Commercial Finance is not itself a bank or a member of the FDIC. 056-061_July14_Equip.indd 61 6/17/14 2:30 PM

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