Industry sector: Leisure

Golf driving range: Payments to creditors


When you buy supplies on account instead of paying cash there and then, your suppliers are your creditors until you pay them. For maximum convenience you will probably aim to set up an account with each of your major suppliers, which, depending on the extent and nature of your business, might include:

  • ball, mat and other equipment suppliers that provide items for use in the driving range
  • suppliers of new golf equipment for sale in a shop
  • suppliers of food and drink items, either for resale in a shop or for use in a café or restaurant
  • suppliers of items that would be used in the running of an additional golf course, putting green, practice bunker and so on (if these services are provided)

Different types of supplier may offer you different account terms. For example, suppliers of golfing equipment for resale may offer you 30 days credit whereas suppliers of fresh food goods may only offer you seven days.

The Organisation of Golf Range Operators (OGRO) includes a list of preferred specialist golf range suppliers on its website.

Setting up an account

To set up an account you may be asked to provide bank and trade references and until the account facility has been granted you will have to pay for your order at the time you place it. This is known as paying on a pro forma basis.

Once your account has been set up you will be invoiced at monthly or fortnightly intervals, and expected to pay within a certain number of days of receiving the invoice.

Discounts

You may be able to negotiate various discounts from your suppliers for:

  • paying your bill within a specified period, or paying by direct debit
  • buying goods in large quantities. Balls, for example, become much cheaper when you buy them in bulk

Discounts may also be available on equipment, clothing and so on that is not perfect quality, is part of last season's range, or is being discontinued.

In some cases suppliers may impose minimum order conditions and charge you for delivery.