For a Hopkinsville, KY landscaping company, a new mower or a used loader can be paid off through a dealer program, a bank or credit union, or an independent equipment lender. Which of the three costs less depends on the rate, the term and any cash discount the dealer gives up. Requests sent to Rowanharbor Finance go on to independent funding partners, and any offer is theirs to make.
One invented landscaper prices a stand-on mower: a dealer’s low-rate offer against a cash discount financed elsewhere, worked out to the rate where the two cost the same. A used compact track loader shows an independent lender’s side. Every dollar figure is made up.
Dealer financing at the point of sale
Dealers of mowers and compact equipment may offer financing through the manufacturer’s finance arm. The offer is made on the spot and may carry a low promotional rate, but it can come with a condition: the buyer who takes the promotional rate gives up the discount paid to a cash buyer.
In an invented case, a dealer lists a stand-on mower at $13,980 and offers a 2.9% annual rate for 48 months, or $1,100 off for a buyer who pays in full. Financed through the dealer, the invented mower costs $308.82 a month and $14,823.36 over four years.
Bank equipment loans and their documentation
A bank or credit union can lend the invented $12,880 cash price so the buyer keeps the discount. In this invented case a credit union offers an 8.95% annual rate over the same 48 months: $320.21 a month and $15,370.08 in all, which is $546.72 more than the dealer offer even after the discount.
A bank can look at the business’s tax returns and balance sheet, may ask the owner to sign personally, and may want the business’s deposit account. That paperwork can take longer than a dealer’s counter, which matters when the mower is needed this month.
Independent equipment lenders and used equipment
Independent lenders may fund machines a dealer program does not cover, including used units from another owner. In an invented case, the same company finds a used compact track loader at $41,600 with 1,850 hours on it and puts 10% down, $4,160. Paying off the other $37,440 at an 11.7% annual rate takes 36 invented payments of $1,238.19.
For a used machine, a partner may look at its age, hours and service records, and may set a shorter term than for a new one. More on used and new machines is on the equipment financing page, and longer fixed terms on the term loans page.
Comparing offers from three sources on one mower
| Source | Amount financed | Annual rate | Monthly payment | Total paid |
|---|---|---|---|---|
| Dealer program | $13,980 | 2.9% | $308.82 | $14,823.36 |
| Credit union | $12,880 | 8.95% | $320.21 | $15,370.08 |
| Independent lender | $12,880 | 10.8% | $331.64 | $15,918.72 |
In this invented case the dealer offer wins: financing the $12,880 discounted price elsewhere only comes out ahead at 7.06% or less, worked in 0.01% steps against the dealer’s $14,823.36 total. A larger cash discount or a shorter term moves that crossover, so the test is worth running on each quote. At the credit union’s 8.95%, the invented cash discount would have to reach $1,559 before paying cash with borrowed money beat the dealer’s offer.
A line of credit is the wrong tool for the mower itself, but it can carry the parts, blades and repairs that come with a larger fleet. Landscaping services employers in Christian County, KY paid 112 employees and $3.7 million in annual payroll in 2023, County Business Patterns shows (NAICS 561730).
By Rowanharbor Finance · Updated
