What funding solutions are available for schools?
Currently, an operating lease is the only type of lease agreement that state funded schools (local authority or academy) can enter into without prior approval from the ESFA.
What is an operating lease?
An operating lease allows the customer to use the asset over the agreed contract period in return for rental payments. These payments do not cover the full cost of the asset as the lease will generally run for less than the full economic life of the asset and the lessor would expect the asset to have a resale value at the end of the lease period – known as the residual value. This residual value is forecast at the start of the lease and the lessor takes the risk that the asset will achieve this residual value or not when the contract comes to an end.
Ownership of the asset remains with the lessor and the asset will either be returned at the end of the lease, when the leasing company will either re-lease, or sell it to release the residual value. Or the lessee can continue to rent the asset at a fair market rent which would be agreed at the time. With an operating lease there is no option for the customer to take title at the end of the lease.
What are the benefits of leasing with Room 12?
By leasing, schools can upgrade their technology, equipment and facilities immediately, without the need to save up their budget to buy upfront. Instead, schools can spread the cost through affordable fixed rental payments, which can be adapted to suit each school’s budgetary requirements. Room 12’s solutions are fully complaint within the UK Education Sector.
Other benefits of Room 12’s funding solutions include:
Consistent classrooms – Refresh all your classrooms at once, so they each have the same technology, allowing teaching to move seamlessly between classrooms and helping IT staff to solve technical issues far quicker
Easy budget planning – Payments are fixed for the agreement term
Flexible payments – Pay either monthly, quarterly or annually, to suit your budgetary requirements
Keep equipment up to date – As equipment and technology can become outdated quickly, leasing is a great option as there is no need to source additional funds as you can simply upgrade the equipment for the latest model at the end of the lease.
Retain your capital funds – Keep capital available for maintenance and unexpected costs
What is the leasing process?
Leasing can often seem daunting and complicated, but with the right advice and payment plan, it’s actually a simple and cost-effective option for schools to get up-to-date equipment without breaking the budget!
Leasing is so easy it can be boiled down into a few simple steps:
1. Decide on equipment
The first step to starting your lease journey is picking which equipment is perfect for your school. Not sure what equipment you need? Our specialist school procurement team is at hand to help you decide!
2. Agree on a payment plan
Leasing is not only simple, but it’s also flexible. This means we can tailor the payment plan to the pertinent needs of your school. Simply speak to our team and we’ll work with you to create the payment plan that fits within your budget requirements.
3. Get the equipment installed
Now that the paperwork is sorted, your chosen suppliers will come and set up your equipment for you.
4. Enjoy your new equipment
And that’s it! You can now enjoy your equipment and enhanced learning environment!
What happens towards the end of the operating lease?
At the end of the primary term of the lease, the asset can either be returned to us or the lease can be extended into a secondary period, where the lessee can continue to rent the asset at a fair market rent which would be agreed at the time. With an operating lease there is no option for the customer to take title at the end of the lease.
What is the process for signing the documents?
All relevant paperwork will be emailed to the designated signatory to be signed through DocuSign. DocuSign meets and exceeds some of the strictest global security standards and is the world’s leading e-signature product. All business and personal information is kept confidential.