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6 advantages of leasing golf course equipment

Rick Montgomery

By: , Account Manager

It’s that the time of the season! You want to upgrade your golf, turf, and clubhouse equipment but you’re faced with a challenge: you can’t afford to buy all the equipment you need, yet you want to keep your operation at its best for customers.

Thankfully, there’s a way to stretch your dollar and get more equipment – leasing.

Here’s why it’s your best option.

1. Increased buying power

With equipment leasing, you’ll leverage your buying power considerably. Let’s say you have $50,000 to spend this season on new equipment for your course and clubhouse. You need golf carts and clubhouse amenities, which cost a combined $80,000. Acquiring all that equipment isn’t possible with a purchase, but it is with leasing.

Equipment leasing will spread the cost of your golf carts and clubhouse equipment over years with scheduled payments, meaning you’ll pay only a fraction of that $80,000 cost each year. You now have the financial flexibility to better your course sooner without emptying your budget.

2. Match payments with revenue

Your operation earns the majority of its revenues during summer months when your course is its greenest, so why not pay for your equipment then, too? With leasing, you can structure your lease payments to correspond with busy periods so you’ll pay for your equipment when it’s making you money.

3. Keep your cash reserves and lines of credit

Rather than traditional financing, leasing leaves your cash reserves and lines of credit untouched. This means you’ll have cash on hand for other business opportunities.

4. Save on a down payment

With equipment leasing, you’ll likely boost your buying power even more since there’s generally no down payment required.

5. Easily upgrade your equipment

Replacing your equipment is easy with leasing. At the end of your lease, you’ll trade in your golf, turf or clubhouse equipment for the latest and greatest to keep your course and clubhouse fresh. You won’t need to worry about selling back the old equipment. Your leasing company takes cares of it.

6. Possible tax savings

You can potentially write off your equipment leasing payments as a tax expense rather than depreciating the capital cost of your equipment. However, you should always speak with your accountant about your tax options before acquiring any equipment.

The flexibility to succeed

Equipment Leasing means increased flexibility – financial flexibility and the flexibility to know that you can upgrade your equipment after a few years. With leasing, you won’t restrict your equipment options because of budget. You’ll get all the equipment you need to keep your course and clubhouse running at their best.

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