Capital leases are simply purchase leases. Ownership of the property transfers to the lessee by the end of the term. What makes a capital lease option desirable is the ease in which School Districts are able to acquire them. Rates quoted to school districts are traditionally below commercial rates keeping payments low.

Why lease? First, it's never a good idea to make a purchase or enter into a capital lease if there is not an ROI on the technology being acquired. But if ROI can be demonstrated from the implementation of the project then the lease option is the most flexible and expedient. Capital leases can be used to purchase network hardware, software, cabling and services.

Districts often use a broker to obtain the lowest rates. The application is relatively short and payment for the goods and services is made directly to the provider upon District approval of the disbursement.