Our commitment to compliant leases for school equipment
In this blog, we discuss compliant leases and our rental agreements which adhere to the Department for Education’s leasing guidelines.
When you’re looking into renting school equipment, it’s important to have confidence in your equipment provider (lessor). After all, when renting valuable products in bulk, you want peace of mind about the equipment and its leasing terms.
Unfortunately, you may come across some misinformation about compliant leasing. In this blog, we’re clearing up the confusion by exploring how we tirelessly maintain our commitment to compliant leases!
What makes a lease compliant?
In the context of leasing school equipment, being compliant means that a leasing agreement meets the industry’s standards. If a lease fulfils these, you have the assurance that your lessor is legitimate and leases with honesty, legality, and integrity.
The Department for Education (DfE) outlines clear guidance on what to look out for when researching leases. If a lessor’s terms and operations match the best practice outlined by the DfE, schools can place confidence in that company. Transparency about minimum lease periods, maintenance terms, and end-of-lease arrangements also suggests a lessor is compliant.
Our operating leases
As we follow the guidance of the DfE and the FLA, we exclusively offer operating leases. This is one of two types of equipment lease – the other being financial leases.
Lessors or funders who comply with the sector’s standards will not offer financial leases to schools. The reason for discouraging financial leases is that they would mean schools take on the associated risks of borrowing funds for the equipment. This isn’t ideal for schools on a budget! Additionally, this type of lease must be approved by the Secretary of State – which is a rare occurrence – so financial leases for school equipment are unusual.
By offering operating leases, we (the lessor) take responsibility for any related financial risks. This means we’re totally compliant with the sector standards, so our school customers can rest assured that we’re doing things by the book!
What makes our rentals fully compliant?
With all the technical and legal terms surrounding compliant leases, we’d forgive you for being a little confused!
It’s important to be aware of misinformation when looking to lease. One of the biggest myths you’ll hear is “rental leases aren’t operating leases”. This is misleading and, if believed, could stop your school from getting the best deal on school equipment.
Our rentals are indeed operating leases. This is because:
- They run for a specific and agreed period, instead of the equipment’s full economic life.
- Utility Rentals is liable for the financing of the rented equipment’s full value.
- Operating leases are inherently rental agreements – rather than financial leases, which are credit agreements.
- With our fully managed service solutions, our customers (schools) are never responsible for any equipment-related risks, such as breaks-downs and maintenance – that liability is squarely ours!
By providing operating leases that adhere to the guidance of the DfE and FLA, we’re as compliant as it gets. We’re firm believers that students and teaching staff deserve access to the best equipment possible. With our flexible agreements and payment plans, Utility Rentals can help you get exactly what you need – rather than restricting you to what you can afford outright.
To learn more about our transparent and lawful leases, contact our rental experts today!