LEA approved Operating Leases are a vital tool in a schools arsenal, to help them acquire the hardware resources they require, when they require.
Over the last 5 years an increasing number of Local Education Authority (LEA) schools and academies have turned to operating leases to fund new IT equipment and hardware. At SchoolCare we have a wealth of understanding and knowledge regarding the educational finance legislation which means we can provide an operating lease via our third-party broker. They will ensure the operational lease contract complies with the various rules concerning the evaluation of finance and operating leases.
SchoolCare can assist with arranging an education operating lease to spread the cost of essential IT hardware over a typical 1 to 3-year term helping to make budgets go further. We have helped many schools and academies with their finance needs to help them secure necessary IT equipment upgrades.
Operating lease costs are calculated using the difference between the cost of the equipment and what the finance company considers it will be worth at the end of the contract term.
It is important to understand that schools and academies have funding allocated to them so they can operate daily. The rules set out by the Local Education Authority do not allow an educational establishment to have a lease rental agreement as this would be classed as external borrowing, and not a part of the schools operating costs. When equipment is invested via an operating lease, it is categorised as vital to the daily running of the school and can be attributed to the schools operating cost.
A school who is leasing their IT equipment at the end of the contract term will be given the option to hand all the equipment back to the finance company. This will give the school the opportunity to lease brand new IT hardware allowing the school to upgrade their technology and to ensure that they are never left behind with obsolete and out of date hardware.
With ever tightening school budgets, leasing your IT hardware can make a big difference for schools. Schools leasing their IT equipment is a proven budget stretcher for the increasing IT equipment demands of an educational environment.