Courses utilizing Rain Bird's new financing program

Golf Course News, Nov 2002 by Overbeck, Andrew

Editorial Focus: Irrigation tx Pump stations

AZUSA, Calif. - Since its introduction in July, Rain Bird's partnership with Bankgroup Financial Services has been well received, according to new golf division sales and marketing manager Glenn Griffee.

"Rain Bird Financial Solutions is an integral part of Rain Bird's complete system and financial approach," Griffee said. "Several courses have taken advantage of it, and we are training our sales team and distributors to fully roll out the program.

San Francisco-based Bankgroup Financial Services has financed more than 300 irrigation projects.

"In the past, we have had relationships with lenders that have provided customers with relatively limited financing options," Griffee said. "We were less involved in the process, leaving it largely up to the customer to figure it out. Rain Bird Financial Solutions is different because we can be actively involved in designing a customized solution"

While the new financial offering is geared toward both new course construction and renovation work, Griffee said existing courses will see more benefit.

"There is more benefit to renovation projects because in this case, the deal can be structured based on cash flow rather than collateral or a real estate-based transaction," he said. "As long as you have evidence of solid footing, it is easier to secure financing. We are looking for more of these deals in renovations, given the landscape of today's market."

To help courses determine what renovation work needs to be done, Rain Bird is also offering irrigation assessment studies that evaluate the irrigation system's capabilities. The resulting renovation plan takes into account the course's budget and performance goals.

The financing program can also be tailored to each individual course's needs.

"If seasonality is an issue, the payment schedule can be altered to reflect the months of the course's operation," said Griffee. "If a member-owned course wants to assess some members while offering a monthly payment plan to others, this too can be accommodated."

The financing deal can also be extended beyond the irrigation system to other hard and soft costs, including labor associated with renovation work, or even new mowing equipment.

Griffee said the financing option is an important offering for the company because it makes the renovation decision easier for courses.

"Competition has never been more intense than it is today," he said. "And the rate of new golf courses will probably continue to decline in the next couple years. However, we realize that today's golf course managers are challenged with keeping good playing conditions to attract golfers. Since irrigation plays such a critical role in maintaining the appearance of a golf course, renovating the current system will help courses gain a competitive advantage."