Operating leases through our partner: LDF

Budgets are being squeezed in the education sector and finance officers must be more innovative to find the funds needed to pay for infrastructure and equipment.

But if your school doesn’t have the budget to fund a critical investment, what options do you have?

At Surveyors to education we help clients apply for public money for infrastructure projects, but you can also tap into private funding, through operating leases.

LDF and education sector operating leases

LDF is a partner of S2e and are a major independent non-banking lender to small business. Experienced in the regulations surrounding the education sector, LDF also offers educational operating leases and over the last 12 months have made more than £4.3 million available to schools and academies.

What is an operating Lease?

Education operating leases are a popular option for schools and colleges trying to fund investment. Put simply, an operating lease requires the school to pay a rental fee to hire an asset over a set period of time.

Operating leases are unlike finance leases, which are arrangements to borrow money to pay for an asset, and are illegal under Department for Education rules.

Normally, the period of a lease is less than the useful life of an asset and at the end of the lease period, the school usually has two options:

  • Return the asset
  • Negotiate an additional lease period
  • Pros and cons of operating leases

Leasing for schools is often cheaper in the short term but ultimately costs more than buying outright. However, smaller schools may have little alternative, and there are benefits:

  • Greater flexibility, allowing schools to spread the costs over the lease period.
  • The leasing company usually remains responsible for repairs and maintenance.
  • Leased equipment, such as IT, can easily be upgraded at the end of the lease period.
  • S2e can help you find the money for critical projects

Surveyors to Education is a specialist premises planning and funding consultancy for the Academy and MAT sector, identifying funding opportunities for school capital projects.

To learn more about how we could help your school, please contact S2e, call 01530 276127 or email enquire@s2e.org.uk.