Maintained School and Academies. A Guide to Leasing

Financing for schools is now much easier.

 

You may have missed the DfE update on the IFRS 16 leases implementation: 

https://www.gov.uk/government/publications/esfa-update-2-march-2022/esfa-update-local-authorities-2-march-2022

Simply, Academies and Maintained schools no longer need to get Secretary of State approval to enter into a finance lease for any of the following:

  • IT equipment

  • telephony

  • catering equipment

  • furniture

  • bathroom/sanitary equipment

  • gym equipment

  • grounds keeping equipment

  • minibuses and other vehicles for the use of the school

  • temporary classrooms and equivalent structures

 

If you are looking to take advantage, then these are our top tips:

1) Get quotes for provision of the services (with and without a lease option)
2) Let us shop around fro your lease finance (it will almost certainly be cheaper than the suppliers quotes).

We offer a completely free lease quoting and arrangement service. 

All you need to do is:

 

  • Send us a copy of the quote for the works / products / installation you wish to do


  • If you have a lease quote, ,please send a copy,


  • Let us know the term you would like to fund it over (usually 5 years but potentially up to 8 years).


 

We will then arrange a completely no obligation quote for you and we will support your application for finance if you decide to use the quote.

We will not charge you a fee for this service as the funder usually pays us an introducer fee.

You do NOT need to take your equipment supplier's leasing arrangements.
You Have a Choice.

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Our research tells us that, if a school decides to fund using a Lease, almost without fail, they will :
 

  1. Choose the suppliers funding solution

  2. Do not research other options

  3. Do not use a broker to help them source better terms.



Let's look at the alternative options and 'bust a few myths'

  • You DO NOT need to use your suppliers Lease option. There is a good chance that you can achieve better rates for the lease elsewhere but still get your equipment from the same supplier.

  • You absolutely should shop around. Rates and costs can vary significantly.

  • We will shop around for you and we do not charge you for doing so (as the lease company will pay us a commission much the same as the lease company pays your supplier a commission if they arrange the lease for you).


If you are not sure if the equipment you want to purchase can be obtained on a Lease, ask us. We will be happy to explore for you.