What is leasing?

• Leasing is a way in which a school, college or university can pay for capital equipment over a predefined period of time rather than paying everything at or before the the time of delivery.
• Leasing replaces one large cash outflow with a stream of smaller cash payments.
• Usually the stream of payments are made to a finance provider who is not the supplier of the equipment.
• Usually the finance provider pays the supplier of the equipment e.g. the reseller at the beginning and then collects the stream of payments from the educational institution.
• The finance provider then owns the equipment until the end of the lease.
• In most cases the education customer keeps the same relationships with the supplier and with the manufacturer as they would have if they had paid cash.
• Leasing is in widespread use in the education sector and institutions of all kinds finance billions of dollars of technology every year.