School Leasing

Leasing Basics

A lease is simply a contract by which you acquire equipment or services for a specified time in exchange for a specified payment. At the end of the term, you may or may not have ownership, depending on the structure of the lease. Routinely, a lease is a simple means to finance a project without referendums or voter approval.

  • Technology, i.e. computer hardware, software, warranties, labor/services
  • Telecom
  • Transportation
  • Copiers
  • Surveillance systems
  • Maintenance and facility equipment
  • Municipal/Capital Lease – In this lease, the customer retains ownership of the equipment. Payments are made over a term, and there may be a nominal purchase option at the end. Often this is called a $1 purchase option lease or Capital Lease. Customarily, a government body will enjoy lower rates due to the “tax exempt” nature of this transaction.
  • Operating Lease – This is a favorite structure for customers who need low payments. The leasing company retains ownership, while the customer benefits from using the equipment. Often this is called a Fair Market Value (FMV) lease, a Tech Refresh, or a Flex Lease. Payments are made over a term, and at the end of the lease, customers have flexible options: purchase the equipment for the Fair Market Value, extend the term and continue to lease, or return the equipment per terms of the agreement.
  • Fixed Balloon – This program provides the customer with equipment ownership. Payments are made over a term with a fixed balloon at the end, which may be higher or lower than the regular payments. At times, the fixed balloon is matched to the anticipated value of the equipment at the end of the lease. When the lease ends, clients may opt to sell their equipment to cover the amount of the balloon, or they may simply pay the balloon and retain ownership.
  • 1 to 1 Solutions – Providence Capital Network is recognized as an expert in 1 to 1 leasing. We often speak at industry conferences on this topic. The goal of a 1 to 1 initiative is to place a computer into the hands of each student through a cost-effective and flexible structure. The following benefits can be incorporated into your customized solution:

    • Lower cost of ownership than purchasing
    • Flexibility to extend the lease or retire and upgrade devices at the end of the lease
    • Parent/student purchase options at the end
    • Terms available to facilitate roll outs for entire schools or to stage by grade
    • Infrastructure financing
    • Accidental Damage Protection & Warranties available
    • Even monthly or annual payments for easy budgeting
    • Turnkey solutions to decommission devices at the end
    • Option to select your preferred equipment supplier
  • Conserve capital (100% Financing): If a restricted budget hinders you from acquiring new assets or pursuing a large initiative, consider leasing. Often, conserving capital and spreading the cost over the useful life of the equipment is a prudent decision.
  • Provide a consistent budget: Level your budget expenditures from year to year, and smooth out the peaks and valleys.
  • Avoid technology obsolescence: Reduce user frustration and proactively use technology to advance your curriculum.
  • Ensure cost-effectiveness: Leasing options are often better than vendor financing or purchasing, with payments and rates typically lower than most anticipate. It is worth exploring.
  • Eliminate equipment disposal issues: Lean on experts to not only dispose of retired assets in a data-safe and environmentally friendly fashion, but also to possibly recover revenue from idle assets.
  • Keep it simple: You can still order from your favorite equipment supplier. Check out our simple, step-by-step process.

Our entire business is built around simplifying things so that you can meet the needs of your staff and students. Our consultative approach includes the following nine steps:


  1. During an introductory call, we learn about your needs and share strategies that have worked for others.
  2. We provide you with budgetary planning structures.
  3. Together, we review your planning structures to determine the best solutions for your usage needs, budget, and rotation.
  4. We provide suggestions on equipment, suppliers, and a final lease structure.
  5. We review your lease application in a timely fashion to obtain credit approval
  6. We assist you in preparation for Board approval.
  7. Following our credit approval, we deliver standard lease documentation that is embraced by law firms.
  8. Once your Board approves the lease, you order equipment directly from your favorite vendor(s).
  9. We provide a simple procedure to approve invoices so your vendor(s) are paid in a timely manner.

Providence Capital provides a smooth, efficient process. You maintain one primary contact not only during the lease preparation process, but also throughout the life of the lease. We exist to make it easier for you to obtain, maintain, and dispose of the equipment your schools need in order to thrive. Call or email today to talk with us about how we can help you.