Require Immediate Support? Helpline 0800 056 0410


PUBLISHED ON: 19/04/2023

Commercial finance for education businesses

From early years to university, quality education has a profoundly beneficial effect on society. For some education providers, though, delivering financially sustainable education programmes is challenging.

Early years nurseries have struggled to deliver the ‘free’ childcare hours to parents, which were introduced by the government to facilitate a return to work. At the other end of the scale, the government’s Skills for Jobs initiative has taken the emphasis away from a university education.

The alternative for school leavers is gaining technical qualifications at colleges and in other further education settings, which from the universities’ point of view could negatively impact student numbers.

Tailored funding options for the education sector help to protect high standards and allow the delivery of quality education in all settings. UK Business Finance are funding specialists and can help to find the best type of finance for education providers.

Pound Symbol

Secure Your Funding In Minutes – Get a FREE No Obligation Quote

With full market access and absolutely no ties to any lender, we can objectively match you with the most effective and cost-efficient source of business finance. Contact our team today!

Challenges facing the education sector

Soaring energy costs
The rising cost of energy affects all educational establishments and with many energy suppliers withdrawing their fixed tariffs, budgeting with any certainty is difficult. Cost pressures can result in reduced facilities, spending cuts, and larger class sizes.

Investment required by universities
Universities may need to invest in the provision of new types of courses and collaborate with local further education colleges if their numbers fall. Alternatively, they can try to attract more students by upgrading or expanding their facilities, which would also require considerable investment.

Cost of living crisis affecting independent schools
The rising cost of living is affecting independent schools directly via increased operational costs, but also indirectly due to parents feeling the negative effect on their own finances. A rise in tuition fees may be the answer in some settings but could be risky where household budgets are already squeezed.

Commercial finance solutions for the education sector

Working capital finance
Working capital finance is commonly used to cover outgoings associated with a development or growth project. It is a short-term form of financing and helps educational establishments to function more effectively on a day-to-day level when a development project is ongoing. It can cover the additional demands on working capital, for example, which might include expenditures such as wages, supplies, or utilities.

Asset finance
Asset finance helps education businesses to access expensive assets without the need for capital outlay. It includes hire purchase and finance leases, which spread the cost of the item and make the investment more affordable. Hire purchase also allows for full ownership of the asset at the end of the agreement.

Commercial property finance
Commercial property finance includes business mortgages that work similarly to residential mortgage loans. Owner-occupier commercial mortgages may be used to fund investment in new educational buildings on an existing site, for example, or in a new setting.

Equipment finance
This type of finance can be used to fund teaching aids such as computers and laptops, or gym equipment. Equipment hire purchase and equipment leasing involve spreading the cost of the equipment over an instalment plan, with the option to take ownership of the asset at the end of a hire purchase contract.

Applying for education finance

UK Business Finance are well-established commercial finance brokers and we understand the criteria of all lenders in the UK. We will guide you towards the best funding option for your business needs and offer our services free of charge.

  • No need to sign an exclusive contract to use our services
  • Whole of market searches to find the best deals
  • Applications written on your behalf
  • Quotes for a wide range of funding options

Please contact our expert team for more information on how to finance your education business.

Mobile Phones

Secure your financial future - get a free quote today!

Our team of finance experts can provide industry-leading advice on mortgages to suit a range of different scenarios. Call the team on 0808 301 0624 or Contact Us

Contact us for more information

  • Fully Independent
  • Whole Market Access
  • Matchmaking Process

Top Finance Tips

We work across a wide range of sectors throughout the UK, providing specialist advice to each sector.