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How Schools Can Stretch Budgets - A Guide to Funding

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With the summer holidays not too far away in the distant future, many schools will be thinking about what improvements they want to make over the summer. Whether it's new computers, carpet for their classroom, a new sports surface or playground - money is always the issue especially in today's climate.

There are a lot of funding companies out there, and it is good advice to use one that works specifically with the education sector and has a good understanding and experience of working on similar projects. My understanding is that schools cannot simply borrow money and pay back with interest as a business or individual would. Capital Funding for Voluntary Aided Schools in England explains how:

A school cannot borrow money without the express permission of the Secretary of State.  A trustee can borrow to provide facilities at a school, but cannot use any school assets or school revenue, as a form of security.  All loans must be free standing and have no financial impact on a school, and the school should not take on the burden of the loans in terms of paying out money or selling assets.  If the Trustees wish to borrow for the school legal advice should always be sought.

However, there are rental schemes out there which work in a very different way, where payments are split over a period of years and paid on a monthly basis. Funding 4 Education explains their system in more detail.

There is a myth that only people who can't afford to pay cash actually rent. Nothing could be further from the truth. Many people tend to overlook the fact that with any capital equipment, they are actually paying for what the equipment does and not what it is! Now, no organisation would dream of paying an employee's salary 3 years in advance, they pay for the benefit as they derive it on a monthly basis. Renting enables schools to apply exactly the same concept to their equipment. They pay for it as they get the benefit from it.

With Funding 4 Education you can have the sports surface you need, installed when you need it regardless of whether the school has the full amount of money or not. For example if a school has a capital budget of £50,000 per year for three years, it is only possible to spent £50,000 each year. By using a company like Funding 4 Education, schools can get £140,000 and have the cash to hand to pay for the installation of the new multi use games area or 3G football pitch immediately.

With schools starting to install tennis courts, MUGA's and 3G pitches with floodlighting, these synthetic pitches can withstand much more hours of use and one of the major benefits of using a rental system is that the new synthetic surface could potentially pay for itself if the school were to collect payments from hiring the surface out on an evening or weekend.

To find out more about Funding 4 Education visit www.funding4education.co.uk or email Playrite by clicking here.

 

Posted at 09:44


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