Nimans looks to fill leasing gap for cash-strapped schools

Distributor says other lenders have shied away from operating lease deals

Nimans is aiming to plug the gap in funding available in the education sector by increasing its provision of operating lease agreements and other financing deals.

The Salford-based distributor has deepened its involvement in the leasing space in the recent years and claims to have grown this business by 200 per cent since 2011. Nine months ago the firm set up a dedicated division and frequently runs training courses designed to bring VARs up to speed on the art of financing.

Tom Maxwell, dealer sales director at Nimans, claimed that many schools are now being asked by local authorities to use operating lease agreements. These are deals whererin end users pay back only 90 per cent of their rental lease value.

"Someone has to take a residual value risk, which makes the lease cheaper," he added. "Many funders have pulled out of this area of the market, but we can offer these leases over seven years."

Nimans' financing packages are offered for deals of £1,000 upwards, with no higher limit. Contract lengths range from two to seven years and customers can lease telecoms and IT kit, as well as non-tech equipment such as furniture or cars.

Maxwell claimed that many VARs are unaware of leasing and its benefits, or are wary of bringing the subject up with clients.

"A reseller offering credit is crucial because if they are not then someone else will be," he added. "We are aware of resellers capturing deals because they offered leasing even though their original cash price was higher than a rival.

"It's a lot more palatable for an end user to buy equipment at hundreds of pounds each month instead of a one-off payment of, say, £10,000. Generally a reseller will be talking to an IT or comms manager who is really not that interested how equipment gets paid for. It's the financial director. What the reseller needs to do is make it as easy as possible for their contact to sell it to their finance boss."