Tax-Exempt Leasing Financing For K-12 Public Schools
Avoid delays. Upgrade your classrooms sooner than later with an easy and affordable way to fund your eInstruction® technology purchases.eInstruction® is partnering with the Baystone Financial Group to provide a tax-exempt municipal lease financing program for K-12 public schools that want an easy and affordable way to fund their eInstruction® technology purchases.
Baystone Financial Group specializes in tax-exempt purchase financing and has provided professional financing to government entities for more than 21 years.
Tax-exempt lease financing allows your school to fund 100% of a purchase with minimal money down. Since the interest earned by the lender is exempt from federal income tax, borrowing rates tend to be lower than commercial bank rates.
LEASE FINANCING offers many benefits, such as:
- No large up-front cash outlays
- Competitive interest rates
- Only current year's lease budget for K-12 schools
- Tailored to financial situation of each customer
- Customized payment terms and structures
- National Vendor Programs
- Multiple items under one lease or individual leases
- Straightforward documentation
- No hidden fees or closing costs
- Fast approval and document processing
Call your eInstruction® sales representative at 866.496.4949 or contact Steve Riska in the eInstruction® finance department at 940.381.3368, or steve.riska@einstruction.com, for further information.
LEASE FINANCING FAQ
What is a municipal or tax-exempt lease?
A municipal or tax-exempt lease financing provides your school with an alternative to purchasing an asset with cash.
What types of entities qualify for a municipal or tax-exempt lease?
For the lease to qualify for the interest exclusion, a lessee (i.e. the school district) under a tax-exempt lease must be a state or possession of the U.S., the District of Columbia, or a political subdivision thereof. This may include state entities such as school districts, special purpose districts, etc.
Why lease the equipment?
There are laws in all 50 states that restrict the ability of most school districts to borrow money. There are, however, very few restrictions on the ability of school districts to enter into a lease. Leases represent a year-to-year commitment on the part of a school district to make lease payments, not a commitment to pay debt service. In other words, leases are not considered debt and, therefore not subject to the limitations placed on debt by state and local laws.
Is leasing easy?
Lease purchasing is much easier and quicker than bonding. A lease agreement can be completed in a matter of days, whereas a bond may require months or years of planning and execution and still may be more expensive.
Who owns the equipment under a tax-exempt lease and who is responsible for maintenance, insurance, and taxes?
The lessee (i.e. the school district) takes title to the equipment or deed to the property at the beginning of the lease. The lessor (i.e. the leasing company) takes a security interest in the equipment or property as collateral. The lessee is responsible for the use, maintenance, and insuring of the equipment or property.
What can be financed on a tax-exempt basis?
Any personal property equipment essential to the operations of the school district, including eInstruction's entire suite of hardware and software.
Am I limited to certain types of equipment?
NO! Lease financing covers all "essential use" equipment from clickers to whiteboards, including eInstruction's Cornerstone Education Suite software (when locally installed - not applicable to hosted installations).
Is there a minimum amount that can be financed with Baystone Financial Group?
Yes - it is $5,000. Every leasing company likes to finance the "big" transactions, but it takes a special lender like Baystone Financial with a special commitment to be able to finance a broad dollar range to meet their customer's needs. Why? Because Baystone believes in long-term relationships and they recognize everybody no matter how big or how small, should be able to finance their equipment if they desire to do so.
Can I make payments via "auto draft" or ACH?
Yes, because the lender is part of a bank, you can easily set up an auto draft option for your payment. Baystone will send you the "optional" auto draft form with their finance contract. This way, you can choose to make payments via check or auto draft.
Does the lessee have the option to pay off a lease prior to the last payment?
Yes! The lessee (i.e. the school district) may, on any payment due date, exercise their right to buy out the lease purchase agreement to save on future interest costs. If you are between payment dates and would like to payoff off your lease, simply call Baystone Financial and they will provide you with a payoff amount.