Golf Simulator Equipment Financing
“Do You Need To Finance New Or Used Golf Simulator Equipment?”
Golf Simulator equipment financing is growing in demand as this technology becomes more popular in the market place. The financing available for golf simulators can come in the form of an equipment loan or an equipment lease. Because of the relative newness of the technology, its not uncommon for the financing company to want a repurchase or remarketing agreement from the vendor or manufacturer of the golf simulator asset. And because technology changes so quickly, its also harder to get a 60 month or longer golf equipment financing term compared to other types of new assets that can be financed.
As a result, while used golf simulators can potentially be financed as well, they are also going to be for a short repayment term and will require a considerable down payment in most cases.
For well established companies with strong cash flow, there still is the potential to get great rates and terms as the equipment financing decision is going to be weighted more on the cash flow and the corporate repayment covenant and less on the actual asset held as security.
As more of these units enter the market and as a resale market develops, there will be more lending flexibility for both new and used golf simulator equipment as we tend to see for most equipment types that are considered to be commodities in their own right.
Get Golf Simulator Equipment Financing That Meets Your Needs
When we speak of vendor remarketing or repurchasing agreements, the equipment financing company is looking to the vendor to be connected to the resale market and to have the ability that may not be readily available to the bank or leasing company to liquidate the assets in the event of borrower or lessee payment default. These agreements can see the vendor agreeing to repurchase the assets for a certain amount, for the balance owing, or for some formula agreed to both parties that places a value on the equipment at a given point in time. In addition to the agreements, the vendor will be required to be an established reseller as compared to a relatively new company trying to break into the market.
For equipment leasing arrangements, the asset would be acquired by the leasing company at the time of purchase and then leased for use to the lessee in exchange for lease payments. At the end of the lease term, the lessee will either be purchasing the asset or returning it to the lessor without further repayment obligation. With an equipment loan, the golf simulator asset or assets would be purchased and owned by the borrower with the financing company having a first security position registered against the equipment.