Our initial research tells us that, if a school decides to fund using an Operating Lease, almost without fail, they:
1) Choose the suppliers funding solution
2) Do not research other options
3) Do not use a broker to help them source better terms.
If you would like to add your thoughts to our survey, please take 2 minutes to complete it HERE.
In the meantime, let's look at the options and 'bust a few myths'
1) You DO NOT need to use your suppliers Operating Lease option. There is a high probability that you can achieve better rates for the operating lease (or finance lease if you are an Independent School) elsewhere but still get your equipment from the same supplier.
2) You absolutely should shop around. Rates and costs can vary significantly.
3) A Broker will shop around for you and they should not charge you for doing so (as the lease company will pay the Broker a commission much the same as the lease company pays your supplier a commission if they arrange the lease for you).
Now it's time for 'full disclosure' - 'Education Banking Consultancy' acts as an Appointed Introduce Representative of 'MediFinance Ltd.') This means that we can review the options for you, hopefully saving you money. It also allows you to consider financing the equipment on an operating lease over a longer term rather than paying outright (potentially allowing you to upgrade earlier or not needing to put off equipment upgrades).
Next time you are looking to upgrade equipment or add equipment, consider the following:
A) Can it be obtained on an 'Operating Lease' allowing you to spread costs? (remember that a state funded school can not use a finance lease. they need to use an Operating Lease if they are not buying outright)
B) What terms are the supplier offering you? (Get this in writing so you can compare)
C) What terms can you get elsewhere? (Ask us to find out for you!)
We specialise in Schools. We will be delighted to support you to get better value for money with your Operating Lease.
If you are not sure if the equipment you want to purchase can be obtained on an Operating Lease, ask us. We will be happy to explore for you.