SportsTurf

August 2018

SportsTurf provides current, practical and technical content on issues relevant to sports turf managers, including facilities managers. Most readers are athletic field managers from the professional level through parks and recreation, universities.

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www.spor tsturfonline.com 14 // August 2018 Equipment financing options // By RHONDA FLANERY W hen acquiring a new piece of equipment, there are many options and factors to consider when it comes to fi nancing. It is important for sports turf professionals to understand there is not a one-size-fi ts-all solution. Whether sports turf managers prefer to pay for a machine upfront, or spread payments out over time, each option has pros and cons. To help navigate through all of the options, you should do your research, create a plan and use your resources to fi nd the right fi nancing solution for your operation. Explore your options AS A FIRST STEP when adding a new piece of equipment to your fl eet, you should educate yourself about the different fi nancing options. Each fi nancing option has its own benefi ts, and it is important to select the best solution for your operation. For a groundskeeper that would like to own a machine, a traditional loan can be a great option. Similar to a loan for a car, with a loan the purchaser makes multiple payments on a piece of equipment over a 12- to 60-month period. A loan typically requires a high down payment and more expensive monthly payments compared to other fi nancing options. Additionally, because the equipment is owned by the operation, the machine takes up capital, which might not be ideal. Another downside of a loan is that maintenance prices may increase over time, which can be unappealing for equipment you depend on. To determine if a loan is right for your operation, consider how long you will want to keep the piece of equipment and if capital is important. Another option is an equipment lease, which offers more variety and fl exibility. There are a few leasing options: operating lease, lease purchase (dollar buyout lease) and municipal lease. Each of these options offers different advantages for sports turf professionals based on their needs. An operating lease is ideal for customers that do not want to own the machine at the end of the lease term. One of the greatest advantages of an operating lease is the lower monthly payments and upfront costs. Additionally, because the lease term is shorter, the equipment is usually under

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