Financial Services

Debt collection is not the only way to maximise the collection of fees and improve the school's income. We believe that it is important to help you find ways in which you can work with parents and local businesses to the benefit of the school. Ashfords have considerable expertise and experience in financial services matters, which will assist you in dealing with issues connected with the payment of tuition and boarding fees.

The following exemplifies where and how we may be able to assist:

Contract Terms/Instalment Plans
We can ensure provisions are incorporated into the school's contract with parents providing for default interest on late payments (without constituting an unenforceable penalty) and providing for a discount to incentivise payment in advance of the normal due date. 
 
For those parents who fall into arrears, we can provide standard drafting for instalment plans and advice to schools on consumer credit licensing requirements and/or exempt debtor/creditor/supplier agreement treatment.  In addition, we can give advice regarding credit reference checks and the taking of security for arrears and, in extreme cases, avoiding the risk of regulation under the Financial Services and Markets Act 2000.
 
Referrals for Finance
We can advise about consumer credit brokerage licensing, where a school proposes to refer parents to third party lenders for school fee loans or instalment facilities.  Our services would also assist where a school refers parents to providers of financial advisers in connection with school fee savings plans (whether deposit based, individual savings accounts or other tax free savings plans).  In particular, we can advise on the availability of referral fees for schools making such referrals, whether or not rebating such fees is required or recommended. 

School Fee Funding Products
We have worked on the development of school fee funding products, and have a well-developed bank of expertise to assist in the innovation of new products in this area.  In particular:

• We have developed an education funding insurance scheme providing a deferred tax long-term savings product; and
• We can advise on the possibility issue of loan notes or debentures by schools in advance of a prospective pupil's attendance at school to offset against school fees payable in the future (including with the prospect of fixing the fees payable in advance, with or without a premium included in the cost of the early stage loan note/debenture cost).