Why use an operating lease

ISIS EDUCATION FINANCE proposes that Educational institutions consider adopting operating lease strategies in the context of the following:

Capital Budget restrictions

In situations where Capital Budget restrictions are applicable and where you have an immediate need for plant and equipment an Operating Lease enables you to have access to the use of the asset without having to find the capital cost upfront.

Attractive Cost of Capital

ISIS EDUCATION FINANCE is able to provide Operating Leases at an effective cost of capital which is normally well below the cost of bank loans because ISIS EDUCATION FINANCE takes a residual risk investment in the equipment it finances, something the banks don’t do.

Free up funds for more profitable investments

Instead of paying cash from the municipal fund to finance asset acquisitions, the astute financial manager could take out an operating lease and deploy those funds elsewhere for a better return.

Cash flow

Where you are experiencing difficulty in managing cash flow shortfalls you can reduce the initial outlay and establish agreed payments to suit your requirements.

Tailored Rental Structures

Rental payments can be structured to meet your needs. These structures can reflect seasonal income streams or specific project cash flows.

Total Package Solutions

ISIS EDUCATION FINANCE can fund the total cost of technology and equipment acquisition and installation, including the cost of hardware, software, licensing, management, training and installation costs.

Technology or Equipment Obsolescence “Hedge”

If you want to avoid getting caught with obsolescent technology and equipment or having to use it long after its useful life cycle has expired, then operating leases gives you these choices:

End of term return
Seamless midterm or end of term upgrades to new technology
Replacing unsuitable technology and equipment at anytime

Reduced Tendering and Asset Disposal Costs
This avoids the unnecessary inconvenience, time and cost associated with an individual Institution having to go tender to access funding for an asset acquisition.

Specialists from our ISIS EDUCATION FINANCE Team will work with you during and “end of term” to ensure that you have the most cost effective, easy and seamless options to migrate towards your new asset requirements