What is Lease Financing for School Canopies?
Lease financing, also known as leasing, is a financial arrangement in which one party (the lessor) allows another party (the lessee) to use an asset, such as equipment or property, for a specified period of time in exchange for periodic payments.
For schools and Multi-Academy Trusts, lease financing allows schools to acquire and use a canopy or solar canopy, without having to make a large upfront payment for its purchase. Instead, the school or trust makes regular lease payments over the duration of the lease term, which is typically shorter than the useful life of the asset.
At the end of the lease term, the school may have the option to purchase the asset outright, renew the lease, return the asset to the lessor, or enter into a new agreement for updated equipment, depending on the type of lease agreement entered into.
What types of Lease Agreements are there?
There are three different types of lease agreements – operating leases, finance leases and hire purchase.
Operating Leases:
In an operating lease, the school makes regular rental payments for the use of the canopy, but doesn’t actually assume ownership of the asset. Operating leases can be used for all kinds of capital equipment investment, including anything from school canopies to IT equipment to minibuses.
Finance Leases:
In a finance lease, the school or trust makes regular payments for using the canopy, but effectively assumes responsibility for the asset with the intention of eventually owning it.
The lease payments cover not only the cost of ownership but also repay the principal amount of lease (similar to a loan).
Hire Purchase:
Similar to finance leases, hire purchase involves making regular payments for the use of an asset with the intention of ultimately acquiring ownership. Ownership of the asset remains with the original vendor until the final payment is made.
What types of leases are available to schools?
When leasing capital equipment, state-funded schools are only allowed to use operating leases, unless they have the approval of the Secretary of State for Education.
However, this restriction doesn’t apply to independent schools who do not rely on government funding. Independent schools may enter finance or operating leases as they choose, depending on the type of equipment being purchased.
Kensington Systems have partnered with Tower Finance, a leading supplier of lease finance to schools all over the UK. Together, we offer operating leases to schools and multi-academy trusts. This makes acquiring a new canopy, solar canopy or shade sail simple and affordable, allowing you to enjoy the benefits of additional high quality outdoor space without a large capital outlay.
What are the Benefits of Leasing?
By choosing to finance your new equipment, you will be able to enjoy some fantastic benefits:
• Get the equipment you want when you need it, not just when budgets allow.
• Pay monthly or quarterly payments over a chosen period of time rather than handing over one large lump sum.
• Maintain cash flow within the school or trust rather than deploying it upfront.
• Structure your lease payments to suit your budgetary needs and allowances.
• Protect your existing credit lines by using leasing as an alternative funding facility.
• Improve your facilities and learning environment, setting your school apart from the rest.
How does leasing a new canopy with Kensington Systems and Tower Leasing work?
If you are interested in procuring a new canopy with an operating lease, the process is simple and straightforward. We provide a quote from Tower Leasing based on regular monthly or quarterly payments. If you decide to proceed with the leasing, the leasing contract is set up (subject to finance checks) between you and Tower Leasing. The new canopy is installed by us, and you enjoy the benefits of your new outdoor space while paying for it gradually over time.
If you choose to lease a solar panel canopy, the reduction in energy costs will help to offset the lease payments - a win-win.
About Tower Leasing
Tower Leasing Ltd has been operating in the asset finance industry since 1989. Throughout this time the organisation has built many strong relationships with schools throughout the UK, and is approved by the Department for Education.
Tower offers leases for a huge range of capital equipment, ranging from IT and classroom equipment to solar panels, canopies and modular buildings. They make the leasing process simple and easy.
Along with strong connections with 20+ financial institutions, Tower has access to its own book funds making clearing customers for finance a simple process.
Kensington Systems will be working alongside Tower to provide you with an investment solution which will greatly benefit your school or trust.
Do you have an outstanding quote or an upcoming project which would benefit from a lease agreement? Contact us today to explore the options available.
