Leasing can allow schools to benefit from new ICT equipment that they may not have the budget to procure outright. Operating leases mean that equipment is rented rather than purchased and at the end of the leasing period schools do not own the equipment.
There should always be residual value in the equipment come the end of the lease and therefore the total cost of leasing will always be less than purchasing the equipment outright.
Schools entering into a leasing agreement should always follow DfE guidance. This includes only using companies that are accredited by the Finance & Leasing Association (FLA) and that schools should only consider operating lease agreements.
Full guidance can be found in the DfE publication ‘Leasing and subscription services for school equipment – Guidance for school leaders, school staff and governing bodies‘.
- School requests a standard quote from The ICT Service for the equipment, ensuring compliance with procurement regulations.
- School identifies an appropriate leasing company following DfE guidance and supplies company with The ICT Service quote.
- Leasing company provides leasing quote to school.
- If content that the leasing agreement meets DfE guidance, the school signs leasing company agreement.
- Leasing company places order with The ICT Service who then contact the school to arrange installation or delivery.
- School makes regular payments to the leasing company for the term of the lease.
- Towards the end of the leasing period the school should agree with the leasing company whether to return the equipment, purchase the equipment outright or re-finance the residual value of the equipment at the end of the lease period.
The ICT Service is not authorised to provide financial services, including leasing advice, and therefore cannot recommend any financial service companies. It is the responsibility of schools entering into leasing agreements to undertake due diligence in ensuring the leasing company and agreement selected is appropriate and adheres to DfE guidance.
Any finance quotes supplied by The ICT Service are for illustrative purposes only, schools are not obliged to use these companies and while we undertake reasonable endeavours to ensure illustrative quotes are compliant with DfE guidelines it is ultimately the responsibility of the school to undertake due diligence before entering into any finance agreement. The ICT Service does not receive any financial incentive from the companies used to provide leasing illustrations or actual leasing quotes obtained by schools.