An ICT operating lease is a specific type of operating lease that is focused on leasing technology-related equipment and infrastructure. It is commonly used by schools to acquire and manage their ICT assets.

Under an ICT operating lease, the lessor (the leasing company) provides the school with the use of ICT equipment for a predetermined period, typically ranging from one to five years. The leased assets can include computers, laptops, servers, networking equipment, software licenses, audio-visual systems, and other technology-related resources.

Equipment usage. The school obtains the right to use the ICT equipment without owning it. The lessor retains ownership of the school equipment throughout the lease term.

Lease duration. The lease period is typically determined based on the expected useful life of the ICT equipment and the school's requirements. It can vary depending on the specific lease agreement but is generally shorter than the full expected lifespan of the equipment.

Fixed regular payments. The school pays regular lease payments to the lessor over the lease term. These payments are usually fixed and structured to accommodate the school's budget and cash flow.

Upgrade and renewal options. At the end of the lease term, schools may have the option to upgrade to newer technology, extend the lease, or return the equipment to the lessor. These options provide flexibility in adapting to evolving technology needs.

Off-balance-sheet financing. Like other operating leases, ICT operating leases are generally treated as off-balance-sheet financing. This means the leased assets and associated liabilities do not appear on the school's financial statements, potentially improving financial ratios and borrowing capacity.

Before you decide whether leasing ICT equipment is a good idea or not, it’s always best to compare the cost of leasing against the cost of purchasing. Agile Technical Solutions can absolutely help you with the process, and we will always be honest with the advantages and disadvantages of both.

It’s essential that you understand the costs. Operating lease agreements require a school to make regular fixed payments over a contracted period. You’ll need to think carefully about whether the minimum lease period suits your needs. The best way to do this is to consider how long your school usually keeps similar equipment, and what your foreseeable technology requirements are.

You’ll also need to know what your options are for either continuing to lease the equipment at fair market rates or returning it to the leasing company.

Our ICT equipment operating lease specialist, Steve, can give you all the information that you need to make an informed decision.

There is no universal ‘best’ way to acquire ICT for schools, as it all depends on your school’s finances, whether you want to own your equipment, and how often you see yourselves needing to upgrade equipment, among many other factors.

Operating leases do offer a great deal of flexibility in terms of lease duration and renewal options, though. With the advice of our specialist FCA approved advisor, your school can adjust the lease terms to align with its specific needs, whether it's a short-term lease for a specific project or a long-term lease for ongoing operations. At the end of the lease, you can choose to renew, upgrade, or return the equipment, providing adaptability to changing circumstances.

When deciding on how to acquire ICT for schools, consider your budget, cash flow, equipment lifespan, maintenance costs, and your long-term plans for the ICT equipment. It’s always best to consult with a specialist financial advisor who understand the education sector and your school to provide tailored guidance based on your circumstances.