Are you on the fence between buying and leasing your new phone system? Although initially it may seem like a tough choice, when you examine the facts, it’s a no brainer. To help simplify your decision, here’s a closer look at the top five reasons why phone system leasing is the way to go.


  1. Free up capital

If your company decides to purchase a phone system, you’ll be required to either pay for the whole thing up front, or to lock yourself into an extended payment system after making a significant down payment. Either way, you will end up putting a lot of money into the system. But wouldn’t that money be better spent elsewhere? By opting for leasing instead, you can keep that capital free so that you are able to invest it more productively. You may consider using the cash to build up your inventory, hire new employees, amp up your marketing strategy, or on other business necessities.

  1. Preserve credit

Businesses that make the decision to buy their communications systems either by cash or a loan could be shooting themselves in the feet. A few weeks or months down the road, these businesses may wish that they had not tied up their credit line on a phone system when they need the funds for something else. The good news is that phone system leasing effectively eliminates this problem so that your capitol and credit lines are free when you need them.

  1. Tax benefits

Buying business phones will allow for a one-time write-off when it’s time to file taxes. Phone system leasing, on the other hand, will allow you to get the same tax benefits again and again. This is because each of your monthly lease payments are considered a business expense and can continue to be written off each year. As an added bonus, leasing helps businesses to avoid the Alternative Minimum Tax (AMT) by lowering AMT tax liability.

  1. Enjoy options

When you purchase a phone system for your company, you’re pretty much stuck with your decision – unless you want to spend the money to purchase a new system all over again, while selling the old one for a fraction of your initial cost. The beauty of phone system leasing is that when your leasing period is up, you are given options. If you feel like you’ve grown attached to the system and like it will continue to serve you well for the next several years, you can choose to buy it. If you’d like to wait awhile before changing out the system, you can opt to extend the lease. Or, if you’d like to try out the latest and greatest technologies, you can pick a new system to lease.