From Turf Winter 2019 Issue: Equipment Financing

Discussion in 'Turf Magazine Talk' started by Turf Editors, Dec 30, 2019.

  1. Turf Editors

    Turf Editors LawnSite Member Staff Member
    Messages: 7

    Financing Know-How

    by Angie Harms, tactical marketing planner, John Deere Financial

    There are many financing options for professional landscapers, and it can become overwhelming when trying to select the best option for your business. When considering a new equipment purchase, there are three primary financing options to choose from:
    • Leases
    • Installment Loans
    • Revolving Loans
    Three Choices On The Table

    An operating lease allows you to make a fixed payment over a predetermined amount of time, typically two to three years. At the end of the term, you can either choose to purchase the equipment, or return it back to the dealer, much like an automotive lease. This option is ideal if you would like to improve cash flow throughout the year. This option also allows you to work with your dealer to create an equipment rotation plan, where you can rotate equipment every two to three years. This is an attractive plan because you can use newer equipment, reducing the risk of equipment downtime. As an added benefit, you can work with your dealer to match the lease term with the warranty period, ensuring the machine is under warranty throughout the length of the lease.

    If you want to own the machine at the end of the financing period, a loan would be the ideal option. The loan payment can be spread out into multiple installments, that are customized to your cash flow throughout the year…

    Read the rest of the article here…
     
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