It can be complicated for schools to manage financing with different vendors to purchase equipment throughout the year. A liberal arts college in Iowa was looking for a financing solution to avoid the hassle of negotiating lease terms for equipment from several vendors. With a variety of critical technology and lab equipment needs as well as a long-term HVAC project, the college wanted to combine the multiple projects into one finance facility over the next 12-18 months.
A lease line from First American gave the school the flexibility to purchase computers, AV, and networking equipment on a needs basis as well as implement a new HVAC system later in the year. The structure enabled the college to align financing with the useful life of the different types of equipment. The college also was able to mitigate interest rate risk by locking in the rate on the day the lease proposal was signed. Leveraging the rate lock helped the college maintain budget consistency.
First American’s team also played a significant role in handling invoices from each vendor and issuing payments. This service saved the college staff a substantial amount of time managing invoices.