FEATURE FOCUS: SCHOOL FINANCES
Unlike sports equipment and books, technology continues to advance at a rapid pace and a piece of IT that might have been cutting edge five years ago can often not even be adequate today.
This constantly evolving demand for new equipment can have a huge financial impact on schools. IT equipment tends to have very high capital costs but a relatively short life-span, which means it often depreciates in value much faster than other school equipment.
To ensure that schools aren’t making huge and frequent losses on IT, many are now turning to leasing arrangements.
Leasing gives schools and academies flexible finance solutions where equipment can be acquired without the high initial capital outlay and spread the payments over a term to suit them, on agreements that meet current legislation.
It also gives schools and academies the ability to accurately forecast their spending and keep on top of cash flow, without having to budget for huge one-off payments.
On top of this, it means that at the end of the agreement, the school will be eligible for swap out the old equipment and acquire new equipment, enabling it to constantly have the most up-to-date technology which can accelerate their development plans making the best of the warranties now available from manufacturers.
Independent steps
While state schools and academies are limited in the finance solutions available to them, as they aren’t allowed to ‘borrow’ independent schools and higher education facilities have more freedom when accessing finance.
Independent schools and HE/FE establishments are able to use a whole range of finance options, akin to the commercial market. Whether it is to fund new IT equipment, software, install the
latest technology or build new premises, and there are a range of commercial finance products available such as loans/payment plans or asset finance packages.
Staying a step ahead
It’s vital that any school looking to make large investments in equipment takes independent professional advice first. If in doubt, speak to a trusted adviser who can help you to manage the school’s finances.
At Wesleyan Bank, our dedicated specialists will work with schools to create a bespoke financial
solution that considers their ambitions and is tailored specifically to their business needs. Speak to a member of our dedicated team to see how we could help support your school today and in the future.
Wesleyan Financial Services provides specialist financial advice and solutions to professionals including teachers, doctors, dentists and lawyers and can provide guidance on reviewing your finances.
This article is for guidance only and does not represent financial advice.
November 2017
www.education-today.co.uk 35
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