The use of technology in education has grown exponentially in the past decade. This not only requires schools to implement more hardware in their classrooms, but also make sure they have strong network and security measures in place for all of this new technology. Even with the growth of new technology in education, some budgets have not yet expanded to adequately cover the costs. ScholarBuys provides a solution to schools to help stretch their budget and increase purchasing power. In this post, we will cover some of the costs schools are facing now with technology, and how leasing provides a viable solution to this cost.
The Cost of New Technology
Many K-12 schools are adopting a 1:1 ratio of devices per students in their school, some are even going 1 to many, so students learn many operating systems and styles of devices. Along with the cost of devices, schools must look at management software, storage, charging solutions, and the energy costs to charge all those new devices. Schools must also add to their network to ensure everything runs smoothly, even with the weight of so many devices running on one network. They may even be looking at new security, cases for devices, or professional development for teachers and staff to learn how to use the new technology.
How Leasing Provides a Solution to High Costs
Leasing allows schools to spread out payments annually, quarterly, or monthly over a period of time. These incremental payments help keep schools on budget and/or allows an institution to purchase more than they would have been able to without the lease. All hardware and software can be included on the lease for one easy payment each time. Leases typically run for 24 to 36 months to provide schools with more control over their cash flow.
Fair Market Value (FMV) Lease
A Fair Market Value Lease gives you the ability to purchase the product at any time at fair market value. This is a good option if you want to test out the technology and basically rent it before you purchase. You can stop leasing and return the equipment at any time, continue leasing, or purchase it at fair market value. This option offers lower monthly payments than loans for lease-to-own financing.
Dollar Buyout Purchase Option
With a $1 Buyout Purchase Option you own the equipment after your finance term is up. Once the leasing period is over, you buy out the equipment for $1. This is the best option if you are sure you would like to own the equipment and use it for a long time after the finance term, but want to pay for it in increments. If you want to keep your technology updated and get new products every few years, this is not the option for you.