How Leasing Technology Helps Schools Overcome Inflation

How Leasing Technology Helps Schools Overcome Inflation

There’s no getting around it, inflation is out of control at the moment. UK inflation rates have risen to a 40-year-high of 9%. What this means is the price of goods are becoming more and more expensive by the day.

In the article we’re going to look at five ways your school can use equipment leasing to overcome the drawbacks of rising inflation rates.

1. Lock in your rate before price increases

One of the benefits of leasing, especially in an inflationary market, is that your monthly lease price will be based on the price of the equipment when you sign the lease. However, you will be spreading the costs of the equipment over months or years.

It is best to lock in a price now and avoid price hikes in future. Take a look at our guide to leasing iPad's for schools.

2. Reduce time to purchase

You may think, that’s fine but if I own the equipment, won’t I benefit from the increase in value?

Possibly, however, you need to account for depreciation of used equipment value. What’s more, larger purchasing decisions often have increased purchase cycle times. While waiting for your school to raise funds or sign off on a large equipment cost, it’s likely that… in this market, prices will have gone up.

3. Provide clarity on future costs

By having a fixed annual cost, your finance department will be able to accurately budget and forecast. Something that will become increasingly important as we all begin to feel the squeeze of inflation.

4. Retain free capital for other variable costs

Leasing allows you to spread the cost of your equipment over years if needed. The alternative is to purchase the equipment outright. This huge upfront financial burden can severely impact a school's finances for the coming year. By leasing equipment, you can ensure that free funds are still available to pay for variable expenses. Many of which will be increasing in price. For example, energy bills.

5. Ensure correct and quality purchases

When you decide to purchase equipment upfront you often have to compromise based on what you can afford at the time. This can lead to substandard or not fit-for-purpose equipment that may need replacing much sooner than if you were to have leased the most appropriate equipment from the outset.  It can also result in equipment purchases being split over multiple years resulting in different models of equipment in the same classroom.  Depending on the technology involved this can have a significant impact on classroom dynamics and complicate teaching and learning.

Find Out How Equipment Leasing Can Benefit Your School

In this uncertain financial climate, it is important to continue making prudent medium-term investments to avoid extending the impact of these challenging times. By leasing your IT equipment, you can make the sound technology investments that are required today, whilst protecting your school from the inevitable steep rise in prices.

By leasing your IT equipment, you can ensure you have free capital available for a rainy day. You’ll also know what you’ll be spending each month and that your costs won’t rise with inflation.

If you’re interested to see how equipment leasing can help your school, please get in touch with one of our team.

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