Spring is right around the corner, and landscapers are taking a second look at their fleets to make sure they’re ready for the busy season.
One thing to consider is financing or leasing equipment to help manage a fleet and cash flow.
Here are seven tips for financing equipment from John Deere:
- Identify your equipment needs
Audit your equipment and note any aged equipment that may need to be replaced. Also consider any equipment needed for expected growth.
- Leverage your dealer
Your dealer is a knowledgeable ally that can help you select the right equipment to meet your needs. Meet with your dealer to prepare a quote and consider all payment options, including upfront cash, financing offers, and leasing offers.
- Meet with your financial advisor
Use this meeting to discuss your business needs and, based on your business plan, whether it is best to lease or finance your equipment. Weigh the pros and cons of both options to determine which is best for your business.
- Consider need beyond equipment
You can often add on to leases and notes. Work with your dealer to create a quote that gives you more bang for your buck. Consider attachments, hand held products, and maintenance needs when developing the quote to make it a more attractive solution.
- Check the warranty
Have your dealer give you the warranty information for each piece of equipment. Consider matching the note/lease term to the warranty term so your equipment is always under warranty, keeping repairs and downtime to a minimum.
- Set up a payment plan that fits your business
Many payment plans are flexible when initially setting them up. Choose a payment date that coincides with when you pay your other bills each month. Also, ask your financial advisor if there are months where your cash flow may be tight – many manufacturers like John Deere offer skip payments or seasonal payments for your benefit.
- Be aware of your needs
Don’t be tempted to utilize a longer-term note or lease just to get a lower payment. A better approach to drive your payment down is to consider leasing with the term you need. Keeping equipment for the correct term will keep your repair and downtime costs the lowest.