For a school looking to bring in new technology, an upfront investment obviously isn’t always possible. We’re motivated in what we do to help schools and educational institutions move teaching and learning forward using technology in alternative ways that involve as little risk and hassle as possible for them. There are number of options for doing this, and which is right for you will depend on your institution, your financial position and other factors.
That being said, we’ve taken a look at the benefits of one type of purchasing model for your technology equipment – leasing or a subscription model.
Here are some of the features and benefits of leasing or paying by subscription for technology in education.
Pay less than the total value
Paying for your technology on a subscription plan over its useful life means you end up paying less than its capital value (i.e. the price you would pay if you purchased upfront). Then at the end of your term, say 3 or 4 years, you can simply return the equipment and get the latest tech in its place, continuing your monthly payment model. This also leads to quicker refresh times, meaning you’re less likely to be hampered by legacy equipment in desperate need of replacement. The nature of the agreement and the saving you make can also sometimes you mean you can get additional benefits, such as insurance and other value-add services, for less, equal to or a just a little over the “high street” value of your tech.
Spare cash to reroute
There’s no denying that it’s expensive to invest in technology outright – an estate of PCs or an upgrade of server hardware means a sizeable chunk of budget is gone in one fell swoop. By spreading the cost of this investment over a number of years, you still get access to your new hardware whilst freeing up some cash to reroute to other areas of the school that may need investment, without having to make a compromise. This may be outside of technology or it may be that you can invest this additional cash in improving the overall infrastructure and bolstering the wider network to support an influx of devices.
Off balance sheet
In the modern world, schools are needing to increasingly be run like a business – which is especially the case in academies and independent schools. This means considering the financial benefits of leasing equipment outside of removing the need for upfront investment. Leasing the equipment means that the depreciation is kept off your books, so they don’t appear as at a debt against you and are tax deductible. This element can become more significant if you’re a larger academy, trust or private school which can no longer claim charitable status.
Just like owning any depreciating assets, when purchasing technology, there can be unexpected costs involved. Purchasing upfront with a 5 or 10-year refresh plan can seem predictable at face value, but 2 or 3 years down the line you might find unexpected costs start to crop up, whether that’s ongoing maintenance or having to replace aging technology. With a subscription model, you get the shorter refresh cycle already mentioned, but you also get predictable monthly outgoings that you can easily budget and forecast for. This coupled with the fact that many providers offer wrap-around services like insurance, warranty and support means you get a more concrete and confident view of your technology estate and its future.
Transform your technology today
Freedom Tech are a financially strong company backed by CSI Leasing, one of the world’s biggest equipment leasing companies with over $5 billion in assets. We’re also the only technology subscription provider which holds the ISO 27001 accreditation for Information Security Management and are FLA registered. We can offer complete peace of mind and end-to-end management for your technology subscription programme. If you’d like to find out more, get in touch.