Schools often face budget constraints when trying to improve their facilities, invest in new technology, or upgrade learning resources. Fortunately, several funding options are available to help educational institutions manage their finances effectively.

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IFRS 16 Changes for Schools

The IFRS 16 is an international accounting standard that all organisations must implement and in 2024, they made some changes that would enable maintained schools and academies eligible to start leasing assets under the new rules.  

The changes mean that schools have more options available to them in terms of the types of assets and equipment they can finance. Schools can now finance a wider range of equipment (such as infrastructure hardware) which previously may not have ‘qualified’ under operating lease legislation. They can also spread the costs over longer periods of time which will reduce regular repayment amounts.

However, it is important to note that local authority schools or academy trusts much carry out the proper due diligence before taking out any lease agreements – the School Financial Value Standard requires schools to ensure that any agreement they enter must provide them with the best value for money.

The benefits of finance for schools

When schools are looking to invest in new equipment, technology, or furniture, they often face the decision of whether to lease or buy outright. Leasing school equipment and resources allows you to spread the cost over time, making it easier to manage budgets without large upfront payments. It also provides flexibility, ensuring schools can upgrade to the latest technology without being stuck with outdated assets.  

In contrast, buying school equipment means full ownership from day one, but it requires a significant initial investment and can lead to higher long-term costs if maintenance and replacements are needed.  

For many schools, leasing IT equipment, classroom furniture, and specialist resources is the smart choice, as it ensures access to high-quality, up-to-date tools while keeping finances flexible. By working with an experienced school finance provider, you can find tailored leasing solutions that suit their needs.

Cost-effectiveness

Leasing can help schools access the latest equipment, technology, and facilities, without having to bear the high upfront cost of purchase.

Flexibility

Leasing can be tailored to meet the specific needs and budgets of each school.

Improved cash flow

By spreading the cost of acquiring assets over time, schools can improve their cash flow, as they will not have to bear a large upfront cost.

Up-to-date equipment and facilities

Leasing enables schools to regularly upgrade their equipment and facilities to provide the latest and most effective teaching resources to their students.

What assets can be financed?

Schools can invest in various areas to enhance student learning and create a better educational environment. Some of the most common uses include:

• Technology upgrades, such as laptops, tablets, desktop computers, printers, photocopiers, servers, door entry security systems, CCTV Systems, whiteboards, and touchscreen boards.

• Software used for teaching and management.

• School furniture and upgrades, including desks, tables, and chairs

• Kitchen and catering equipment and fitouts such as tills, water coolers, vending machines, dishwashers, washing machines, ovens, fridges, freezers, water, boilers and small kitchen appliances.

• Building and facility improvements in schools

• Temporary classrooms and equivalent structures

• Bathroom and sanitary items such as dryers, towel dispensers, sanitary bins.

• Specialist equipment for schools such as science labs, outdoor field pitches, indoor gym equipment, and music equipment rooms

• Minibuses and other vehicles for the use of the school

• Groundskeeping equipment (e.g., lawn mowers, string trimmers, leaf blowers and salt spreaders)

• LED lighting systems including lightbulbs, control mechanisms and control panels

• Investing in green technology, such as solar panels or eco-friendly heating systems to help reduce long-term operational costs.

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A New Hockey Pitch for Radnor House Sevenoaks School

Radnor House Sevenoaks is a private co-educational school in Kent that caters to pupils aged 2-18 for Nursery to Sixth Form Education. The school utilised £700,000 to invest in their hockey pitch, IT hardware and a vehicle.  

"Because of Bluestone’s consultative approach to financing, we were confident and felt fully informed throughout. We knew that we were working with industry experts that could deliver on the project." Neil Moulding, Finance & Operations Director

Read more about Radnor House Sevenoaks School’s case study here.

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Interested?

Our online finance portal enables a simple, efficient route to finance - get a quick quote or apply for finance today.  

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Funding for your business

Bluestone is an ethical and FCA-regulated finance intermediary. We are committed to ensuring that our clients make informed financial decisions based on their requirements and always recommend that our clients seek independent financial advice from an authorised source before committing to any financial agreements.  

If you would like to explore software finance solutions in more detail, get in touch using the enquiry form below, or contact us here. One of our friendly and experienced team will be in touch as soon as possible.

Last updated: April 2025. Version: BS2025.03.01SCL

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