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Three Considerations Before Financing New School Equipment

Three Considerations Before Financing New School Equipment

Struggling to get the equipment you need for your school on ever smaller budgets? You’re not alone. The money allocated to schools is expected to cover everything they may need, from a new minibus to classrooms full of new computers and IT equipment. Due to the high cost of purchasing this equipment outright, schools are finding it harder and harder to afford up-to-date equipment and supplies.

School finance, however, provides an alternative option to schools that are looking to invest in new equipment. Leasing allows schools and education centres to pay an agreed regular cost in return for the use of a range of different, much needed up-to-date school equipment. This type of funding for the education sector allows schools to adopt a range of new equipment, while optimising budgets and spreading the cost across a longer time period.

Before financing your school equipment, however, there are a few different factors you should take into consideration.

Three Important Pre-Finance Considerations

school ICT funding

Before agreeing to the terms of any school finance deal it’s important to consider a few factors to ensure you get the best deal on your chosen equipment, and adhere to important regulations too.

Here are three factors that every head should consider before committing to a leasing contract:

 

1Budget and Affordability

The first thing to consider when financing or leasing for schools is the budget, and any other fees that may be incurred as part of your agreement.

When you are planning a budget for your finance deal, there’s more to look at than the monthly cost that’s presented to you.

Make sure you know the upfront cost of the education finance offer and the interest rate that you’ll have to pay with your school finance agreement. School finance can help keep your cash flow stable by splitting your payments into easy-to-manage instalments.

However, when minor details are missed and your forecasting is subsequently incorrect, unexpected payments may crop up and interfere with your carefully laid out budgets. When you’ve agreed to the terms of a finance contract, make sure you check the terms of the agreement in detail helping you to adhere to your budget and ensure you agree to a known cost.

 

2Lease Or Purchase

When looking for an education finance deal for school equipment, it’s important to decide whether it’d be more beneficial to lease (pay instalments in return for the use of school equipment), or purchase the school equipment outright.

Leasing school equipment often incurs lower costs, and although you don’t get to keep the equipment at the end of a leasing contract, this can be a positive. When taking out a school funding deal on technological equipment leasing can be the best possible option because the equipment will need replacing in a few years’ time when it’s outdated – so there’s no need to spend extra purchasing it.

 

3Choosing The Right School Finance Company

When looking to lease equipment for your school, you must make sure you choose the right education finance company for your requirements. An experienced school finance provider will be open and transparent with all costs and contract terms, helping you to agree on the right contract for your needs.

Finding a trustworthy finance provider isn’t difficult, and when you do you’ll be able to access your school’s new assets with a full understanding of terms, and complete cost transparency.

If your plan is to lease or finance school equipment over a long period of time, or regularly replace equipment at the end of an education leasing contract, it’s important that you and your leaseholder company have a stable relationship – so make sure you choose a school funding provider that you can trust.

Find Your Perfect Education Finance Offer

Now that you know what to take into consideration before you agree upon a school lease or finance contract, you can safely go about finding the ideal contract for your school. At Maxxia, we offer trustworthy school leasing agreements that allow your school to adopt a range of features, including IT equipment, school furniture and minibuses.

Discover Maxxia’s dedicated education leasing services today, or contact one of our asset finance experts to enquire about your school finance needs.

By |March 24th, 2017|Categories: Education|0 Comments

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