|  If you ask companies of all sizes what the lifeblood of their business is, they will say cash flow. Ask them how they plan phone leasing finance and answers come a little more slowly. Cash flow can be a problem for any business that's why phone leasing finance can be an advantage as it frees up much needed cash. Instead of buying phone equipment a business can lease them which mean you spend less. A business is able to lease the phone equipment they need immediately without having to pay entire costs upfront. Leasing payments are regular and allow the option to upgrade as phone technology becomes obsolete. Leasing is a financial contract between your company and a leasing company.
The Main Advantages of Phone Leasing Finance are:
Frees Up Cash - Leasing finance for phones frees up cash. Leasing agreements rarely require down payments, though you may have to set aside some cash for a refundable security deposit. In comparison to leasing a loan to finance the purchase of phone equipment typically require down payments of up to 25 percent or more. Unlike many high street bank facilities or overdrafts that are subject to the change in market conditions, a lease facility with its protected payment allows for simple and effective future budgeting.
Low monthly repayments – Phone leasing finance not only allows companies immediate access to the latest phone equipment, it also means that your monthly payment is fixed throughout the term - whatever happens to interest rates or inflation.
Easier to finance than purchases – Securing finance for a capital expenditure purchase, especially for a young business, can be difficult as most finance companies will usually want to see two to three years of financial records. On the other hand leasing companies, usually require only six months to a year of credit history before approving an agreement for phone leasing.
Technology Rotation - Phone leasing can mean that keeping pace with technology is easier. If your business is an early adopter and relies upon cutting-edge technology then phone leasing can be a very attractive proposition. There are a number of leasing finance options that even have regular upgrades built into them, eliminating that difficult decision of whether you can afford to upgrade or not.
Better Equipment – Opinion states that phone leasing allows you to afford more. While you might not be able to afford to purchase that expensive state of the art phone equipment your employees are asking for, you may be able to lease them. Better phone equipment can boost productivity and improve morale.
Leasing v Renting - Phone leasing also has an advantage over renting, especially over the long-term, as this is can prove much too expensive.
Choosing the Right Phone Leasing Finance
Once you have examined the advantages of phone leasing and taken the decision to lease then you need to find the right deal for your business. Here are some of the things you should be looking at:
Short-term Lease - If you do decide to lease equipment, keep the term short. A two year option is a good option.
Technology Rotation - A modern equipment substitution clause is a good option to negotiate. This lets you update or exchange your phone equipment so you do not end up making a purchase for potentially obsolete technology.
Cancellation Clause – It is worth ensuring that your lease agreement has a cancellation clause. Some agreements allow you to pay a fee to cancel the lease. If you take up this option then it is worth noting the cost of any cancellation penalty.
Purchase Option – You may want to purchase the phone equipment after the term of lease has ended so look for a buy option.
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