UCan Play can offer a range of leasing opportunities for equipment orders over £2000 through our partner – Axis Leasing.
For the majority of state schools, Local Authority and other regulations limit the type of leasing arrangements available to schools. Local Authority schools and Academies have been instructed by the Government to enter only into rental agreements defined as Operating Leases. There are several reasons for this, the main one being that the assets are off the organisation’s Balance Sheet.
Most schools already lease all their IT equipment in this way. We are extending this opportunity for musical equipment supplied through UCan Play. The benefits for schools are:
- No capital payment up front;
- Flexibility in terms of not being tied in to the equipment after three years;
- You pay for usage rather than ownership.
Working with Axis Leasing, we have tried to clarify the administration surrounding the setting up of an Operating Lease and thought the most effective way is to itemise the answers to the questions we are most commonly asked.
- An operating lease is a discounted lease – that is why the sum of the rental payments does not always amount to the capital cost of the equipment being acquired;
- In order to discount a lease the funders have to work to a general qualification, i.e. the rental will be calculated on 90% (or less) of the value of the equipment;
- Organisations have the option of returning the equipment at the end of the lease. You can continue renting beyond the original lease period should you wish;
- Typically, rentals work out to be interest free or thereabouts;
- Lease contracts are for a maximum term of 36 months although they may be extended for another two years at reduced rentals;
- All operating leases are rental agreements. They are deemed to be off balance sheet items for accounting purposes;
- The Agreements are for a minimum term, so notice must be given if the contract is to be terminated;
- There are no tax benefits for schools as they don’t pay tax.
Please contact us for further information about the leasing opportunities available.
Please note that other forms of standard leasing are available for further education colleges, universities and independent schools.