Understanding Lease Agreements

A Guide for Schools

This guide explains how school lease agreements typically work, using clear answers to common questions.

When are payments made?

Payments can be tailored to suit your
school’s requirements. Most schools
choose annual or quarterly rentals,
although termly payments can also be
arranged.

Deferral of the first payment to a later
date is possible. For example, a lease could
begin in June with repayments starting in
September.

Lease agreements typically run from 1 to
5 years, or longer for certain assets such
as LED lighting or pianos. The number of
payments and their timing are confirmed
at the outset and clearly stated on the
agreement.

How can I compare rates on a like for like basis?

In a nutshell – ensure you have a cash price
next to the rental quotation. Ask about
administration or document fees and,
importantly, the options at the end of the
contract.

What happens at the end of the lease?

What happens at the end of the lease
depends on the type of agreement you
have signed.

Finance Lease: At the end of the lease,
ownership of the equipment can usually
be transferred to a third party (for example,
the Board of Governors or PTA) for a
nominal amount. Once this is done, the
agreement ends.

Operating Lease: At the end of the initial
term, you will usually have the option to
return the equipment, continue using it at
a pre-agreed rental, or transfer ownership
by settling the agreed outstanding
balance.

Schools should understand how end-of-
term options work before a decision
is made. Some funders may confirm
extension rental terms in advance while
others calculate them by reference to the
fair market value of the equipment at
the end of the lease.

In all cases, schools should ensure that any extension rentals are reasonable, clearly documented and proportionate to the value of the
equipment.

Can we include more than one supplier?

Yes. Multiple supplier quotations can either
be combined into a single agreement or
arranged as separate contracts, depending
on what works best for you.

How do we arrange a lease?

1. Decide which equipment and services you wish to purchase

2. Request a rental quotation

3. Review and sign the rental agreement once you are satisfied with the terms

4. Once the signed agreement is received, the supplier is authorised to arrange delivery

5. The lease begins after the equipment has been installed and accepted by the school

Is leasing a ‘lock-in’?

No. Any purchase involves a commitment.
Leasing allows the cost to be spread over
the useful life of the equipment rather
than requiring full payment upfront.

Is the agreement fixed-term or minimum-term?

Minimum-term agreements require the
school to give the funder notice to cancel
the agreement.

Finance Leases are usually fixed-term,
with a small transfer-of-ownership fee at
the end. This fee may be waived if you are
upgrading into a new lease. Axis Leasing
only provides fixed-term finance leases to
schools to avoid inadvertent charges.

Operating Leases are usually minimum-term,
as there may be an option to
continue renting the equipment beyond
the initial period.

How are payments made?

Payments are normally made by direct
debit, but for education customers
payment by invoice can be arranged. Some
funders may charge a small administration
fee, which would be disclosed in advance.
Axis Leasing does not currently work
with funders that charge for payment by
invoice.

What about insurance?

Once the equipment has been delivered,
the school is responsible for insuring it
against loss or damage. Some funders may
request confirmation of insurance and may
arrange cover if this is not provided.

If you would like a quote from Axis for insurance please take a look at our dedicated insurance page

What if our budgets change?

If circumstances change, we can discuss
rescheduling payments where possible to
support your revised budget position.

We’ve had a bad experience with a copier lease — is this the same?

No.

The copier market has undergone
significant changes following poor historic
practices. As specialists in education
finance, we ensure all terms are clearly
explained, with no hidden charges and full
transparency before you sign.

Still have questions?

If you have a question that isn’t covered
here, please let us know. We regularly
update our guidance based on feedback
from schools.

Testimonials

Axis have supported us to complete three lease programmes across two schools. Our experience has been entirely positive and I would have no hesitation in recommending Axis to other users. They understand the challenges of the education sector and are keen to support with the sourcing and delivery of essential IT equipment. We will definitely use them again in the future.

I would like to express my appreciation for Jack and the team at Axis Leasing. Their support has consistently been exceptional, and they are always willing to assist in any way possible. The ability to communicate with them directly over the phone, rather than relying solely on email correspondence, is greatly appreciated. Numerous times, they have proactively addressed issues before we were even aware of them. I highly recommend their services.

We used Axis to finance a refresh of 90 Interactive Screens for all of the schools in our Trust over a span of 9 months. They gave a good reliable service and have been responsive to our particular requirements. They accommodated our needs by helping us to achieve the best pricing in the market in timescales that suited our roll out programme and our budget. We would be happy to recommend Axis to any school or trust that need compliant leasing.