Rent, Lease or Buy

Choosing a new business phone system that suits your business needs is the first step. Touch Blue can provide you with multiple options on outright purchase, rentals and lease for you to obtain and start using the telephone system of your choice. We recommend that you also consult your accountant to advise on the best purchase option for your organisation.

Rent - a rental option ensures that the telephone system does not add to your assets. A rental option also enables you to upgrade and reconfigure your telephone system during the rental period to keep up with your organisation's growth and increased needs.

The end of the rental period affords you many more options. You can choose to surrender the telephone system and rent a new telephone system that will cater to the updated needs of your organisation.

With the rapid change in communication technologies, the change to a new system will also help you to make use of the new and more modern and more efficient communication methods available.

Changing to a new rented system also affords you the manufacturer warranties which make the upkeep and maintenance of the rented equipment very low.

At the end of the rental period, you also have the option to purchase the equipment and start a maintenance contract, which ensure that you continue to benefit from the features that your organization has got used to for delivering outstanding customer services.

Buy - an outright purchase requires capital outlay. Outright purchase is a good option if CapEx has been planned for and if cash flow is not an issue. As with any CapEx, an outright purchase can help reduce bottom line profit for tax purposes.

Lease - in the case of a lease agreement, you pay for your telephone system over a predetermined period of time. At the end of the lease period, you can pay a residual value (usually determined prior to signing the lease agreement) and take ownership of the telephone system.

As with an outright purchase, in your accounting books, this is treated as a capital expenditure. The value of the asset is also depreciated over the lease period.