Leasing Communications Technology gives your Business the Competive Edge
An increasing number of companies, especially small businesses, are choosing to lease rather than buy small business telecommunications systems. According to a national survey, over 80% of all US Companies use leasing as a business tool to increase cash flow and lower operating costs.
As businesses prepare to compete and grow in the new economy, many are searching for proven ways to address their equipment financing challenge. The old ways won’t meet today’s and tomorrow’s needs. The choice for many businesses is clear: equipment leasing. The difference between leasing and buying your business telephone equipment can have a substantial impact on the value of your business.
Leasing is an attractive option for small business owners looking to expand their businesses without tying up working capital in expenditures for phone systems and data network equipment. In addition, you can totally eliminate the finance expenses of product obsolescence.
Leasing is a smarter method of acquisition when compared to buying technology with cash or using your line of credit at the bank. Smart businesses lease telecommunications equipment because they know that leasing offers numerous advantages over other type of financing, including:
• Tax deductions
• Balance sheet management
• Immediate write-offs
• Great flexibility
• Customized solutions
• Better asset management,
• Improved cash flow,
• Flexible end of term options,
• Easy upgrades
The Equipment Leasing Association survey said the ability to have the latest equipment was leasing’s number-one perceived benefit. Lease programs let you regularly upgrade your telecom materials to a state-of-the-art level, eliminating the inefficiencies of owning an out-dated phone system. Leasing can help avoid the risk of ownership because you only pay for the use of the equipment. With a lease, you pass the financial burden of obsolescence to the equipment leasing company.
Leasing protects you from being locked into owning equipment that may not meet your future needs. You deserve access to the latest equipment and technology and the flexibility to upgrade to the newest releases, features and functionality as they become available. Leasing is the financing solution of choice for businesses that hesitate to buy equipment because they fear it will become obsolete before they can fully depreciate it.
Put your assets to work for you. You have to spend money to make money, but you can’t spend it if it is tied up in receivables and equipment. Instead of using money you need for today’s operations, pay for your new phone system with future profits. Pay for your business assets as you use them, not before.
Leasing offers important tax benefits that reduce your cost of obtaining equipment. Depending on the type of lease, you can write off the entire monthly payment as an operating expense or capitalize the outlay. The value of any small business asset is “using it”, not “owning it” and tying it up in fixed assets. Use retained earnings to invest in assets that appreciate. Combine this concept with the tax and cash flow advantages of leasing to accumulate wealth for your small business.
Cash is the first line item on your financial statement and balance sheet. If you use cash for an equipment purchase, your net worth goes down equal to the amount of the purchase. Keep your financial statements strong instead of weakening them! A lease won’t show up on your credit and won’t decrease your net worth, or credit score. Businesses that lease telephone systems now enjoy a new source of credit along with the added benefit of being able to “expense” the payments. Even better, since leasing won’t affect your net worth, it is “Under the Radar”.
All small businesses need to sustain a competitive edge, with new competitors, new market forces and economic financial strains. When selecting new technology, one often wonders if it will be replaced by a faster, more powerful alternative next year, or even next month.
With leasing, you can put a technological “safety net” in place, so your companies’ competitive edge is never dulled by the process of upgrading your equipment. You’re able to easily keep up with your competitors. Leasing can enable your small business to acquire communications technology that might be otherwise unaffordable. The result: You’re better able to keep up with your larger competitors without draining your financial resources.
You rely on equipment and technology every day to operate and grow your business. Leasing allows you to respond quickly as your need for equipment and technology arises. You can be approved for financing within hours through minimal documentation and you can have the equipment you need in operation and producing profits for your business.
Avaya Financial Services is constantly reviewing and developing its finance solutions to meet the changing needs of customers. They work closely with Avatel and Avaya’s design, manufacturing and marketing teams to develop powerful but flexible solutions that reflect the latest trends both in technology and in business.
Unlike many other financing companies, Avatel in partnership with Avaya Financial Services will finance your entire solution telecommunications and data equipment, wire, services, and maintenance. Having over 20 years’ experience in the telecommunications and data market allows AFS to offer market leading structures and terms.
Whether you’re in the market for a new phone system, video conferencing technology, data networking, or related technology – we can help you through the process. Discuss your telecommunications financing needs with an Avatel Lease Specialist experienced in telecommunications funding to determine what would work best for your business at 866.835.2661.
Jamie Wood, Avatel EVP
- Posted in: Uncategorized