Groundscare
Case study
A golf club in Lincolnshire we have funded £30,000 of new mowers for. They have set up repayments on a lease purchase agreement, payable annually in arrears (commencing April 2012) in line with their annual club subscription income. The VAT is payable on the repayments as they fall due so have no VAT payment to make for 12 months either.
ECF are prominent in this sector as most of the machinery required is akin to the agricultural sector. All mowers, trenchers, irrigation equipment, dumpers and excavators are funded on a similar basis to the agricultural sector. Hire Purchase and Lease Purchase are still popular although some customers prefer operating lease or hire agreements if the equipment is needed for a particular term or an individual contract.
Golf Clubs require this type of equipment as well as landscape contractors, the clubs tend to favour leasing due to the VAT deferment onto the rentals made, as apposed to VAT payable as deposit as with Hire Purchase for cash flow advantage. Seasonal and bespoke repayment profiles are still popular in this sector as cash flow must come first when funding large projects or a golf club’s finances.