Benefits of phone system leasing

Acquiring a new business phone system is often an effective way to boost productivity and realize long term cost savings. Financing this investment, however, can be a challenge for many businesses. Leasing can be an efficient and effective financing alternative for managing growth and planning for the build-out, upgrade or replacement of existing equipment and technology while preserving cash flow.

Seven reasons why you should consider leasing your business phone system:

1. Gain 100% Financing

Hardware, software, cabling and services can be financed, enabling you to walk out the door with a “total” solution!

2. Conserve valuable working capital

Equipment purchased with cash depletes your working capital. Lease financing allows that working capital to be used more effectively for other purposes.

3. Acquire ease of budgeting and inflation protecting

Phone system leasing provides an alternative source of financing. This allows you to acquire the communications equipment that you need without limiting your ability to finance inventories or greater short-term needs.

4. Avoid the obsolescent

Business phone leasing allows you to use the equipment that you need over the term in which that it will be useful to you. Leasing allows you all the benefits of ownership without the risk of being committed to obsolete technology.

5. Enjoy ease of acquisition

Leasing provides you with the convenience of one-stop shopping! Once you select the equipment, you then decide on the payment terms that best fit your budget.

6. Get tax advantages

Due to accounting and tax treatment of leases, a lease may provide some tax-timing benefits to your business. The savings involved will vary depending on the type of equipment, lease terms and your marginal tax bracket. Generally, lease payments can be treated as operating expenses rather than capital expenditures, whereby providing full and immediate deductibility. You should refer to your accountant for advice on potential savings.

7. Benefit from self-financing

Lease payments are often made with the revenues generated or savings realized through the utilization of the leased equipment. As a result, phone system leasing enables you to achieve a “profit” on the new equipment from the first month of usage.

Phone leasing information

Download this PDF  for more information on our phone system leasing options.

Get started with phone system leasing

To determine if leasing a phone system is right for your business or if you have any questions about lease financing, contact us today! You can also email salesforce@sunco.ca or call directly to 780-809-1786.

LeaseLoanCash
Down PaymentNegotiable, but generally none required- 100% financing may be available10% – 25% of value100% of the cost is deducted from important working capital
Soft cost CoverageAll soft costs can be financedCannot finance labour, maintenance or freightRequires full payment well in advance of benefiting from the new equipment
Payments/cash flowUsually lower monthly payments since a lease has a purchase option at the end of the lease’s term for the asset’s residual valueUsually higher payments since you must finance the entire balance of the purchase priceMust pay in full
ObsolescenceSome leases allow for the equipment to be returned at the end of the lease or traded up for newer equipmentPurchaser owns asset and takes responsibility for its obsolescencePurchaser owns asset and takes responsibility for its obsolescence
Term, amortization and interest ratesOften the same for the two types of financingNo traditional interest owed
Tax implicationsLessee may deduct entire lease paymentPurchaser must depreciate asset and may only deduct a portion of the loan paymentsNo known tax benefits to paying with cash
AccessibilityCredit decision made within 4 hours10 – 30 days to completeImmediate ownership

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