Kids board a school bus.

Equipment Financing for Schools

Finance Equipment and Technology for Your Educational Institution

Equipment financing for schools is funding that banks and other lenders provide to educational institutions for acquiring equipment, primarily through leases or loans. In the United States, these can be traditional leases and loans but the most attractive school equipment finance option available is tax-exempt financing through municipal leases.

Municipal Leases and Equipment Financing for Schools

Municipal leases are lease-purchase agreements that schools use to finance a variety of essential equipment and real property, from information technology and security systems to buses and modular classrooms. These agreements offer an affordable pathway for educational institutions to acquire the equipment and real property they need today, using budget appropriations over the years to come, at a significantly lower rate than traditional financing.

Eligibility for School Equipment Financing

In most cases, public schools will qualify for tax-exempt financing. Educational institutions benefiting from this form of financing include K-12 public school districts, public or state colleges and universities and, depending on the type of transaction involved, schools on Tribal Government (Sovereign) lands. Taxable financing is available for private schools, charter schools, and private institutions of higher learning.

Obtaining Equipment Financing for Schools with Baystone Government Finance

Baystone Government Finance is helping educational organizations like yours across America secure newer, more reliable equipment and improve infrastructure amid budget constraints. We provide a range of financing solutions, including tax-exempt municipal leases directly to schools, and partner with equipment vendors and brokers to deliver funding to education customers.

We are experts in equipment financing for schools – and their communities – nationwide.

Baystone has more than 30 years’ experience in the field as the state government, local government and non-profit lending division of KS StateBank.

Trusted Partner for School Equipment Financing

Schools value our flexible financing terms and payment structures, including the option to delay payments until the beginning of a new budget year. We generate the documentation needed for school financing in all 50 states; have resolutions built into our contracts that can be signed in lieu of a full board or district meeting; and ensure legal opinions are not required for transactions of less than $1 million.

Equipment Financing for Diverse School Needs

Baystone offers comprehensive financing solutions for a variety of educational assets. School needs differ, and we will consider financing any and all capital projects, equipment and real property regarded as essential use.

Popular asset categories funded through equipment financing for schools include information technology, transportation, infrastructure and security systems. You may be surprised by other equipment and real property that is financed this way, such as school heating, ventilation and air conditioning (HVAC) systems, solar and other energy systems, LED lighting, artificial turf, roofs, boilers, copiers, telecommunications equipment, intercom systems and touch panel monitors.

Information Technology: Computers, servers, educational software

Information technology (IT) has become essential for classroom instruction, remote learning, conferencing and school communications. As technology evolves, educational requirements change and equipment reaches the end of its natural life, each school system must manage an ongoing cycle of IT upgrades and replacement.

Educational institutions use equipment financing to fund an array of hardware and software needs, including laptops and tablets, computer monitors, servers, networking devices such as routers, and instructional software. Some schools are even deploying asset management software to keep track of the many IT devices required for students, staff and administrators.

Kids working on a laptop.

Transportation: Bus fleets, including electric vehicles

Transportation ranks high on the list of educational needs addressed through school equipment finance. Bus fleets for transporting students require continued maintenance and replacements, and schools are also benefiting from acquiring newer models with improved engineering, technology and safety features.

Financing solutions for educational facilities are available for acquiring not only standard school buses but also activity, special needs, mini, transit, coach and used buses as well as vans. In recent years, schools have also secured financing to add electric buses and charging infrastructure.

A group of kids stands in front of a school bus.

Security Equipment: Surveillance systems, safety devices

Many schools, colleges and universities are incorporating layers of security throughout their buildings and campuses for peace of mind.

School equipment finance solutions are helping educational institutions enhance safety with video surveillance systems, access controls, locks and alarms, motion sensors, metal and weapons detectors, and security software. Interest is growing also in financing integrated security platforms, cyber-security software, and systems leveraging artificial intelligence (AI) as safety precautions.

Infrastructure: Modular buildings, facility enhancements

Educational facilities are using equipment financing for schools to modernize aging infrastructure and acquire additional buildings to serve the changing needs of their communities. Financing for modular classrooms and buildings is giving many schools across the nation the flexibility to manage shifting populations and educational demands. Other types of real property that are typically financed include sports complexes, gymnasiums, administration facilities and shop buildings.

Empowering Educational Institutions with Tailored Financing Solutions

Baystone provides flexible financing options to meet the preferences and budgetary requirements of diverse educational institutions. Tax-exempt municipal leases are the most popular option and offer many advantages.

  • Optimize school budgets – Municipal leases allow schools to avoid upfront cash outlays for essential equipment and real property. They offer financing rates that, on average, are 30 percent lower than rates for traditional commercial leases and loans, and schools can own their capital assets at the end of the lease term in many states. Municipal leases can also be combined with escrow accounts earning interest while waiting for any long-term deliveries.

  • Enhance quality and efficiency – By spreading out the costs of assets as they are used, tax-exempt municipal leases give schools access to the equipment and real property they need now to improve instruction and operations. Master lease terms embedded in our contracts also allow schools to easily add equipment as their needs evolve.

  • Stay competitive – Municipal leases equip schools with an affordable financing option for offering the latest technology and modern infrastructure. This is not only a consideration for private schools, and for public and private colleges and universities that compete for students, educators and benefactors. It is also increasingly important for public K-12 schools in attracting and retaining professional talent.

Equipment Financing Solutions for School Districts, Government, Vendors and Brokers

Explore Baystone Government Finance’s comprehensive school equipment financing solutions, tailored for diverse stakeholders:

  • School Districts – Our financing solutions are giving schools across the nation access to the essential equipment and facilities needed to deliver a quality education. We are experts in tax-exempt municipal leases and a variety of other flexible financing options.

  • State and Local Governments – Baystone not only provides tax-exempt financing to schools but also to their extended communities. We fund a wide range of essential equipment and real property for state and local governments and special districts.

  • Vendors and Brokers – Our programs allow equipment vendors to serve more school customers by offering tax-exempt financing with their bids. We handle the financing process and work directly on their behalf with education customers. We also help brokers expand their school financing transactions.

Request a Quote for School Equipment Financing

Baystone is committed to working with you to support educational progress and meet the needs of your state and locality. Together, we keep communities running.

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