Outsiders understand the options

In golf, the difference between winning and losing usually hinges on how well golfers make key decisions. The same holds true for the folks who manage the golf course itself, nurturing the fairways and greens, maintaining the buildings and facilities, and keeping the operations running smoothly.

All that takes a lot of work – and plenty of equipment: golf carts, mowers, utility vehicles and much more. Finding the right equipment is important, but so too is the job of financing it. It’s a complex decision and the stakes are high. Make the right call and the rest of the job gets a whole lot easier.

When course managers arrange for new equipment and financing, they may wait a year or more for the equipment to be delivered. During that time, a lot may have changed in the financing market. Is the vendor estimate still good a year later when the equipment finally arrives? Are the original terms still the best deal?

In many cases, course managers can save significant dollars by leveraging changes in market conditions to their advantage. But first, they must take the initiative to investigate their options.

One obvious question is why even finance your equipment purchase at all? For that, the answer is straightforward, and the reasons are many. Financing often allows you to preserve working capital, facilitates budgeting (sustainable and predictable), enables you to acquire better/more equipment, may save on maintenance/repair and, when done right, can be quick and convenient.

Buyers in search of financing often turn first to the equipment vendors, who typically collaborate with a preferred financial provider. In most cases, the financial provider will offer various financing solutions, provide guidance on structuring the transaction and help complete the transaction.

Understandably, many customers do not realize they can shop around for more favorable options while they wait for their equipment to be delivered. But in a world of fast-changing market conditions, reevaluating the financing arrangements makes sense.

But how to go about it? Start with getting independent advice.

That’s where lenders with a team dedicated to the special needs and conditions of the golf course and country club sector can really add value. With the right industry knowledge and expertise, experienced lenders can guide clients to better financing options and better decision-making.

It’s not just about the competitive rates, flexible payment structures or wide selection of options with access to top-of-the-line equipment. Partnering with a financial institution gives business owners a seat at the table.

With a deep understanding of the unique challenges and opportunities in the golf industry, the customer’s chosen financial partner can speak to potential risks, offer insight on terms of the agreement and better yet, negotiate terms that are favorable to the customers.

As a customer, you should not have to wade through the fine print. Let the financial experts help you assess whether or not the deal truly meets your needs by taking into consideration what really matters, like your business’ working capital or growth potential.

It all comes down to empowering business owners to make the right financial decision. You wouldn’t use a sand wedge to putt. Don’t use the wrong lender for your course equipment. And if you aren’t sure you made the right choice initially, take a mulligan and shop a second time. It could make all the difference.

Shawn Foy is the group head and director of the golf & turf equipment leasing and financing business at First Citizens Bank. As a veteran banker with over 20 years of experience, including 15 years devoted exclusively to golf and turf financing, Foy is well-known in the industry for his customer centric approach, and leveraging his deep industry knowledge to support existing relationships and grow new business nationwide.