Golfdom, December 2011

fast said Dan Meersman director of grounds The Philadelphia Cricket Club The benefits of leasing are the standardization for employee training the ability to sync warranties and ensure all parts needs are streamlined If you follow the replacement cycle you developed its easy to walk down the path of whether purchasing or leasing is the best choice Generally purchasing is the way to go for those pieces you identified as having long replacement cycles over five years Leasing may be better for equipment like greens or fairway mowers that are typically updated more frequently There are other differences between buying and leasing and how these purchases are accounted for on your organizations balance sheet which may influence your manager and board of directors Basically leasing comes out of your operational budget and purchasing out of your capital budget So leasing equipment may leave lines of credit open that can be used for renovations or other areas needing improvement in your club This is worth keeping in mind as you develop your plan Its no surprise that golf courses that follow their plans opt to have a mixture that may include multiple terms and both operating and lease purchases as well as outright purchases 3 THE FINANCIAL PARTNER Of course another way to reduce the stress of the whole process is to pick a financial company you can trust So look for some specifics when considering your finance company options The first thing is the stability of the relationship Changing finance companies can be time consuming and a hassle In difficult economic times comfort can be found in having a long term financing relationship based on trust Next consider the companys reputation for integrity and support Weve all heard rumors of dealings that may not be within our comfort zone True or embellished its important to think ahead and ask any and all financing questions you may have Its better to ask in advance than to regret the question you didnt ask after documentation is signed Look for demonstrated flexibility Your club may have specific nuances that require flexible arrangements Within reason and with a stronger credit profile you should have access to a seasonal payment schedule for example 6 on 6 off 8 on 4 off Lastly its important to work with a company that is familiar with leasing or financing equipment for golf courses Industry knowledge is important 4 THINK THROUGH THE WHOLE PLAN FIRST THEN RELAX You have plenty of other worries to address when maintaining your course Figuring out how to afford the equipment you need ideally should not be one of them So if you plan ahead discuss your options with local distributors and benchmark with your peers you can take a lot of the aggravation out of the whole process Rhonda Flanery is a product marketing manager with John Deere Financial She has worked for John Deere for 22 years w w w g o l f d o m c o m Golfdom 23 Its essential to understand the motor and mechanics of any piece of equipment so your technicians have the necessary background to properly maintain your new purchase Here John Deere Golf representatives give the customer a good look at a greens mower PHOTO COURTESY JOHN DEERE