- Conserves Capital: Leasing conserves valuable company working capital and preserves your bank credit lines.

- Offers a Convenient Application: Provides Quicker Approval with Fewer Hassles

- Preserves Bank Credit Lines: Leasing lets you put your equipment to use immediately to generate revenues - with minimum budgetary impact.

- Cost: Lease financing is generally more expensive than bank financing, but in most instances it's more easily obtained.

- Gives Flexible Payment Options: Leasing permits 100% financing with no down payment, so you get the equipment you need without a major cash outlay. With leasing, you can arrange long, flexible terms with low monthly payments.

- Allows for Easy Upgrades and Add-ons: What if your business is growing and you need to add phone equipment. In most instances, the leasing company will allow you to add this equipment to your existing lease

- Lease payments are fixed, not adjustable: You don't have to worry about floating interest

Frequently asked questions:

Is leasing of new and/or a used phone systems appropriate? Any business at any stage of development leasing is always an alternative. For start-up businesses with no revenues, "small ticket" leases as in phone systems, those of $100,000 or less, are feasible on the personal credit of the founders or owners.

Is there a supply leasing funds for used phone systems and new phone systems? Abundant. Of the billions of dollars individual and institutional investors pour into the capital markets each month, a good hunk finds its way to leasing companies that use these funds to purchase equipment on behalf of small businesses. With more and more money flowing into the markets, leasing companies are flush with capital. As a result, they are eager to do business and respond to competition with lower monthly rates.

Can other costs be included in lease of business phone system? Leasing can also finance the soft costs often associated with equipment purchases, such as installation and training services.

How hard is it to obtain lease financing for a used phone system? Easy for leases of less than $100,000. An application for a small-ticket lease is generally no more complex than a credit card application. Leases for more than $100,000 require detailed financial information from the business, and the leasing company conducts a more thorough credit analysis than it would for a smaller transaction.



How do I find a leasing company for by new or used business phone system? Finding an equipment-leasing company is easy. Almost any phone system equipment a phone system installer could conceivably provide offers a lease option.

What are the lease option terms I can expect for new phone systems and used phone systems? Usually the leases are set up in terms of 24, 36, 48 or 60 month terms.

What are my purchase options of this phone system at the end of the lease?

$1.00 Buy Out: At the end of the lease term, lessee may purchase the equipment for $1.00. (Most popular because then you can own the equipment at the end of the lease for $1.00. The monthly payment is only slightly higher then the other purchase options.)

10% Purchase Price: Customer may purchase the equipment at the end of lease for 10% of the original transaction cost.

Fair Market Value: This program gives you the most flexibility with upgrades to combat obsolescence. At the end of the lease term the lessee can continue to lease the equipment, return the equipment or buy it at its fair market value.

What is my down payment? The options are usually no down payment, one months lease, or first and last month's lease payment.

In summary, conserve capital with monthly lease payments on your business phone system, installation and voice/network cabling. Though it's not apparent at first glance, the company offering the lease financing for your used phones or new phones is not the same one that is selling the equipment. The company selling the equipment simply makes a direct referral to a leasing company with which it does business.

It's a good idea to get a quote from the leasing firm referred by the company that wants to sell you the equipment. The quote should be competitive. After all, the company selling products wants to sell as many as possible, and it surely doesn't win any points by referring a leasing company that gouges its customers. But it also pays to get another quote. Usually, the company selling the equipment works with more than one leasing company. Or ask a friend or a business associate for a referral.