Schools are only allowed to borrow an amount equal to 10% of annual operating income. This includes TELA leases, Photocopiers, and any other operating leases, and includes Painting Contracts.
If Schools exceed this limit by the end of the financial year, without prior MOE approval, a breach notice will be added to the annual reports.
Often times the cause for this is additional Equico leases for student devices.
If you want to double-check where you stand, or you are about to sign a new lease – please check with us.