Institutions and businesses that require education equipment need to adhere to strict budgets. Often, they only have limited funds to dedicate to learning.
Unfortunately, purchasing educational equipment outright is costly. Buying equipment for a new computer suite in a school can cost upwards of £30,000 — a significant cost.
But there’s a solution: educational leasing. Instead of buying equipment upfront, you instead lease it from a leasing provider. Under this setup, you pay a regular monthly subscription.
In this post, we take a look at some of the benefits of such an arrangement. We explore how it can help your organisation, whether you run a business, school, university, or charity.
It reduces the opportunity cost of capital, protecting your budget
Spending vast sums of money on educational equipment implies a high opportunity cost. You could have used the capital elsewhere.
With leasing, though, you’re free to use education funding for other things. You simply pay a monthly fee for the use of the equipment and then return it when you no longer need it, avoiding any large upfront outlays.
It lets you upgrade more often and stay up to date with the latest technology
While you can buy and sell educational equipment regularly, it is a hassle. Many organisations need to upgrade their systems every year to stay up to date with the latest technology, implying high administration costs.
You can avoid this, though, with educational leasing. Here, the leasing provider simply replaces your equipment with the latest versions when updates become available, eliminating the need to buy and sell all the time.
It avoids depreciation
In addition, whenever you buy educational equipment, you expose yourself to depreciation. These assets tend to lose value quickly, resulting in higher liabilities on your balance sheet.
When you lease, though, you’re not responsible for loss of value in equipment — that’s the job of the leasing provider. You simply pay for access to equipment services when you need them.
Lastly, educational leasing is affordable. You can spread the costs of equipment over smaller regular payments, protecting your cash flow and allowing you to budget more effectively. Educational institutions of all sizes can benefit.
For more information about education leasing, get in touch with Tower today to talk about leasing and equipment finance.