Modular classrooms are a brilliant, eco-friendly and sustainable alternative to traditional building projects, especially when it comes to financing and budgeting for the project.
With a swift construction time and little onsite disturbance, the benefits of TG Escapes’ modular classrooms extend to reduced transport, construction and onsite management costs, as well as a highly sustainable and efficient building upon completion. Such benefits ultimately result in a classroom which is much more economically sound and adaptable than any traditional building project, and one which will save energy and environmental costs far into the future.
However, here at TG Escapes we acknowledge that even with these environmental and economic benefits, the financing for a modular classroom build can be daunting and difficult for most schools and nurseries. For this reason, we have created an in-depth guide to the financing options available to schools and nurseries wishing to invest in a modular classroom and help you find the right option for you.
Capital funding is a traditional and established form of financing which can help you towards the cost of a modular classroom building project. Capital funding essentially involves the giving of money in the form of a grant which can be applied for by schools and nurseries looking to invest in a new modular classroom.
There are a number of different funds which can be directed towards the capital needed to finance the building of a new classroom, of which some are provided by charitable organisations. It can, however, be difficult to know which grant is the best option for you when navigating the number of different capital funding providers available.
For this reason, TG Escapes has produced a Grants Bulletin which will help you select the right kind of grant for your school’s or nursery’s needs. Furthermore, we have access to a team of specialists who can help guide you through the options and find the most suitable option for you as well as providing any further assistance you may need in managing the capital funding process. To get in touch with our specialists, simply call us on 0800 917 7726.
Providing a long-term alternative to capital funding, operating leases are another financing option available to schools and nurseries wishing to invest in a new modular classroom. Operating leases involve the payment of a rental fee for the hire of your modular building which will be paid over a set period of time.
The payment and length of time for the payment will depend on the cost of the project, however, at the end of the lease, you will be able to continue leasing the building at a fair market rate or return it with no further payments needed. As a guideline, an operating lease based over a 5 year period for every £1000 spent on the building will have a monthly cost of £18.51.
Operating leases provide schools and nurseries with a number of benefits when used as a finance option to fund a new modular classroom:
- They provide quick access to classroom funding and the eventual use of the classroom as a result.
- There is no upfront capital outlay to help with budgeting.
- The fixed costs also allow for easier budgeting.
- The cost is spread out over a number of years.
- Operating leases are treated as expenses rather than a debt, protecting your balance sheet.
It is important to note that, under current Government regulations, the only type of lease agreement that state-funded schools can take is an operating lease and can only be approved by the Secretary of State as they are viewed as a form of borrowing. If you would like to find out more about operating leases and the different education finance providers that can help find the right operating lease for your school, contact us a 0800 917 7726.
Generating Revenue and Other Options
A simple way of providing funding for your new modular building project is to hire the classroom out when completed. Whether as a space for after-school clubs, groups or the local community, renting the classroom as a meeting or group venue out of school hours and during the holiday periods can help provide funding for the classroom itself and may even pay off the eventual cost in the long run.
When considering how to finance your modular classroom, it is definitely worth getting in touch with organisations which can help explain the finance options available to you and point you towards the finance solution for your modular building project.
The Finance and Leasing Association, the National Association of School Business Management (now ISBL) and the Department of Education all have extensive services dedicated to helping schools and nurseries with funding queries and are great resources for those who are still unsure about the right finance option for their school or nursery.
Further information and advice can also be found at:
- Grants4Schools – a comprehensive and up to date funding information service for the UK education sector.
- Our own comprehensive guide to leasing for schools.