With this school year coming to a close, educational institutions are now in the process of planning and budgeting for next year. For many schools this means planning for additional investments due to the expansion of their school. All expansions need to be paid for and getting maximum value with limited budgets is something every charter faces. We spoke with TEQlease Education Finance Specialist Dan Riggs, to address these issues and give advice on how financing can help a school acquire all needed equipment while still staying within budget.
Q: Why should a school look into financing as an option to obtain their equipment?
Dan Riggs: There are multiple reasons a school should finance equipment acquisitions. The main reason is to not pay the full cost of the equipment out of pocket. This allows the school to preserve existing cash, which can be used for unseen expenses that come up throughout the year as well as other school expenses. Spreading the costs over several budget periods rather than paying for it all at once also allows a school to get more of the equipment they need now, rather than just a portion of it. The school is not constrained by its current budget allocation.
Q: What kind of equipment can be financed?
Dan Riggs: Schools can lease all of the capital equipment it uses, including, but not limited to, computers, software, tablets, school furniture, modular classrooms, cameras and security equipment, copiers, gym and fitness equipment, phone and paging systems, and playground equipment. In the past, we have even been able to lease textbooks, which is pretty amazing.
Q: How long does the entire process usually take?
Dan Riggs: One of the common misconceptions with financing is that it is going to be a long, overly strenuous process. However, this isn’t the case. Credit approval can be completed within a day. If the lease structure is complex it may take longer. Funding typically occurs within 24-48 hours after delivery of the equipment and your confirmation that the equipment you received from the vendor is complete and acceptable. Much of it actually depends on what the time frame is for the school. We have gotten certain transactions done as fast as a week, however realistically equipment vendors often take longer to deliver the equipment. Some schools prefer to get approved before selecting what equipment they want, so that lease cost and a budget can be established. That way the school has a view of what it can spend, and all that remains is receiving quotes from vendors and selecting their equipment.
Q: What happens at the end of the term?
Dan Riggs: Well this really depends on what kind of financing the customer chooses. The most common types are fair market value (FMV) (also called a true lease) options at the end of the term and dollar buyout leases (also called a capital lease) where the school is basically “buying” the equipment for $1.00. Schools that choose to work with an FMV lease often obtain and lease equipment that quickly depreciates in value. Dollar buyout leases are ideal for those who plan on keeping the equipment at the end of the lease term, and for equipment with a long useful life. The type of lease you select will often depend on the type of equipment, and how you plan to use it, and this will determine what you do with the equipment at the end of the term.
Q: Why should we choose TEQlease Education Finance?
Dan Riggs: TEQlease Education Finance has been providing equipment leasing solutions to schools for many years. We are regarded as one of the leading education equipment lease financing companies in the United States, and our expertise with charter schools is unparalleled. Our education specialists have years of experience and understand the issues that are particular to schools. We will present you with the best financing options for your charter school. Our goal is to help you get the equipment you need quickly with a payment structure that meets your budgetary needs.
Dan Riggs is an Education Specialist at TEQlease Education Finance. If you have any questions or want to find out how TEQlease Education Finance can get your school the equipment it needs, call Dan at 844-222-1006 or email him at driggs@teqlease.com