Having a complete setup for your business's telephony is an essential part of being able to operate in the modern world.
Many companies have long debates about whether it is better to buy your telephone system outright, or to lease it. Here's a little info about both options, so you can make a decision more easily.
Buying a telephone system: Pros
You own the equipment, and you can customise and control it however you like, internally.
There is no need to worry about paying a fixed amount each month - You pay for everything upfront, saving you money in the long run.
Paying upfront generally works out cheaper than leasing over the same term.
Buying a telephone system: Cons
Compared to leasing, you can't upgrade your equipment without incurring massive costs. This leads to depreciating equipment, and a lower returns value, should you want to sell your existing equipment.
You take a big hit to your cash flow in the short term, and it may harm other areas of your business financially.
Harder to change setup without expert support from a dedicated provider within the industry.
Leasing a telephone system: Pros
No large payments, you can continue to pay affordable rentals each month for your equipment
Most leasing partners will provide upgrades of equipment midway through your lease term, to keep you future-proof and equipped with the newest technology
You can enter an agreement which includes ongoing support and maintenance, so you can have issues addressed and fixed without having any expertise
Leasing a telephone system: Cons
You never own the equipment, so there isn't anything to earn back from it
Leasing is generally more costly when you add up the rentals each month and add them up over a fixed term (as opposed to buying outright)
All of your equipment is managed off site (Providing that you are leasing a VoIP system), so your security is managed by a third party - This is a loss of control, and can make some business owners sceptical
If you're still unsure, think about the layout of your business, your staff etc. Smaller businesses might find that leasing equipment is better as they can expand affordably as they take on new staff - While larger businesses might find that owning equipment is a better option as they have other, larger commitments, such as cloud desktops, marketing and advertising, that they might already be paying for on a monthly basis.
You might not really be too fussed about having the latest equipment, and there is a further option of buying refurbished or older generation equipment outright - Leasing a telephone system guarantees the newest equipment, but this is much more costly if you just need basic calling abilities. Some businesses don't need things like automatic call routing, video calling and conferencing abilities., as it won't be utilised by staff and customers alike.
Thank you for reading 'Should I lease or buy my business telephone system?' by IT Block. IT Block is an IT support services provider based in SIngapore and we love sharing our IT knowledge with the world.