How to balance the cost of an irrigation system

Robert Jackson, division manager for Reesink Hydro-Scapes, solves the problem of how to balance the cost of an irrigation system.

Responsible irrigation has never been more relevant or the pressure so noticeable on clubs to address old, inefficient systems. But it’s a big financial outlay and many clubs, with the cost-of-living crisis not just a consumer challenge, may be currently thinking about how they could get the numbers to work to embark on such a project.

Striking the balance between controlling costs but ensuring the club has the equipment it needs to deliver a quality of course that the board, members and others demand is a delicate one. There’s the changing landscape of golf, led in the main by ever-increasing temperatures and unpredictable seasons – periods of drought, hosepipe bans, tightening water regulations, then unrelenting rain, torrents of water and water logging to consider. Also add to the melting pot’ a faltering system, hours of repair time, new part after new part, and the situation becomes ever more dire.

Robert Jackson, Reesink Hydro-Scapes

It’s that age-old situation – when you can’t see it, no one wants to spend money on it, but that is a fool-hardy approach. The damage caused by underground leaks, for example, can be beyond belief.

Many clubs who fall into the camp of having a decades old system, will probably already have a plan in place for change, but the facilitation of that plan can be where things get tricky. This is after all one of the most expensive projects a club is likely to undertake.

A sensible approach is to look at this the same way most large purchases are addressed and that’s through financing.

Choosing and using finance is not a simple subject, but those already using finance and leasing turfcare machinery will be familiar with the ease with which it works, the flexibility it affords and the options it provides.

The level and sophistication of financial planning at many clubs today means that accurate budgeting and financial information are now features of machinery operating and replacement programmes. Regular replacement on machinery offers clubs a number of advantages such as increased reliability reducing the incidence of breakdown, subsequent downtime and maintenance costs. New machines incorporate the latest design features and technology and produce a better job.

And these benefits can, in theory, be just as easily applied to an irrigation system, except with the added benefit of having a much longer ‘shelf-life’. A decent irrigation system can have a life expectancy of 30-40 plus years, and while it’s likely there will be some hardware and software updates required from time to time.

Understanding the basics of how irrigation finance works is important since it plays a key part in planning and budgeting. Buying irrigation on finance takes away two of the biggest headaches we find exist for those embarking on an irrigation installation: it means the full installation customers need is much sooner and there is a smaller upfront capital outlay. Anyone who has gone through the process will know that choosing and installing an irrigation system can be a lengthy one, phasing installations over years. Removing the headache that comes with financing the project means that you’re making the decision-making process a lot simpler and quicker and there is no need to phase in.

There are two ways for a business to purchase an irrigation system with Reesink on finance – it’s either leased or hired (hire purchase). The difference between the two is who owns it after the transaction. A benefit to each is the fact that both are fixed costs and will not change during the life of the agreement, which makes accurate budgeting far easier.

Generally, loans, HP and other fixed-cost financing are over medium-term periods, between two and five years. But one of Reesink’s unique selling points is that it offers an extended term of up to ten years, which is longer than the usual asset lending period. This option was set up to help customers spread the cost even further, while also demonstrating full confidence in a Toro installation and its backup support.

We have a 50:50 split when it comes to customers choosing to pay back monthly or annually. Both options have their benefits: some prefer to factor it into monthly outgoings, others prefer to pay when the annual membership subscriptions come in. The repayment calendar is of course down to customer preference. Unlike an outright purchase, asset finance lets you pay for your irrigation system in monthly, quarterly or semi-annual payments. And what’s true to all is that no minimum deposit is required, and that’s another of Reesink’s unique selling points – the first instalment is paid on signing.

Based upon business needs there are different ways for a business to acquire an irrigation system with Reesink on finance. Businesses might opt for a loan or overdraft to pay for equipment, without realising that asset finance is a hassle-free option.

Toro’s easy, precise irrigation is available through Reesink Hydro-Scapes on finance

Reesink’s financial partner, Novuna, works directly with customers to create a tailored, and affordable, asset finance solution to provide the security of knowing that the repayments will give the business the ability to budget and plan without disrupting cashflow.

Features include funding up to 100 percent of the project costs, transparency and support from a friendly team who take time to understand the business’ needs as well as a dedicated business manager with industry sector experience.

For the next decade, a position of stability both on and off the course is going to be vital and what finance guarantees – especially with the 10-year term from Reesink – is an affordable and sustainable solution for responsible irrigation.

With every year a ‘hottest on record’, irrigation action now is key to ensure the future of the course and with Reesink the first distributor in the UK to offer customers fixed term finance on its irrigation products, it has the most years of experience in this arena, making it the perfect partner to work with to keep businesses moving forward in 2023.

“Reesink offered the most flexible solution”

Coventry Hearsall Golf Club is one club to benefit from Reesink Turfcare’s fixed term finance for irrigation. The club said Reesink won it over with its presentation, which gave it confidence that its package and aftercare support would best suit the needs of the club, saying at the time that: “Reesink offered the most flexible solution over a period of time that matches our investment and growth strategy at Coventry Hearsall.”

Financed irrigation at Coventry Hearsall

What’s included in irrigation financing?

Everything from all associated products to installation costs can be financed.

For further information on irrigation financing, call Reesink on 01480 226800, email info@reesinkturfcare.co.uk, or visit reesinkturfcare.co.uk