Buying Telecoms Equipment: Options for Small Businesses - By: Brad Mayhew.

The current economic climate is not favorable for most businesses. All firms, big and small, have been to make huge cuts in order for them to keep going. As much as that is the case, smaller business are the worst hit by the ongoing economic turmoil. Such business cannot afford to spend the little they have acquiring new telecoms equipment. Such ventures are left with no choice but to buy second hand phone systems. These are usually telecoms systems that are being sold by larger companies as they move to newer and more efficient systems of communication.

To start with, in business, given the chance, you should always consider buying something that appreciates in value and lease stuff or property that depreciates. This is because if you decide on reselling the property, you will get a profit instead of a loss. Having said that, you should know that telecoms equipment are among the assets that depreciate and from time to time, the technology behind business phone systems is bound to change which will mean the telecoms systems you have today might be irrelevant tomorrow, which will force you to acquire a new phone system. From this viewpoint, leasing telecoms equipment seems to be the better option for a business but do not rush into making such decision. You should first carry out a thorough analysis considering the following.

Before deciding whether to buy or lease telecoms systems, you should consider the availability of cash and the time you are required to make the payment. When leasing VoIP phone systems or anything, there are interest rates that leases attract. Also, in order to get money to lease the business phone system, chances are you will have to borrow, a move that equally attracts interest charges. What you have to do here is to analyze and see whether paying double interest rates to get telecommunication equipment on lease will be beneficial in the end or not.

You should also consider tax benefits that come with leasing telecoms systems and the tax implications of buying these equipments. When calculating this figure you should include all tax credits that you will accrue when you buy the telecoms equipment. All in all, the point is that you should consider the financial implication of either leasing or buying business phone systems. When doing the calculations, always involve your accounting team. As much as leasing comes with a number of tax breaks, always consider the amount you will pay to purchase the telecoms equipments and the lease rate. Also, consider the lifespan of the technology; if it is likely to outlive the lease, you better buy. Do not forget the financial position of the firm before acquiring phone systems.

Buying second hand telephone systems does not necessarily mean that a company has downgraded. For a smaller business, a phone system that a bigger company is getting rid off can serve it well since it does not have a lot of requirements as their larger counterparts. The most important thing to do, however, is to ensure that you inspect the telecoms equipment before parting with any cash. A small business representative can be accompanied with technicians who will test the phone systems before making a purchase. If you lucky and get a company that maintains its equipments well then you should be rest assured that whatever you buy will be in good shape and will be of help to your firm.

About the Author

Josh Raymond is the author of this article on Telecoms Equipment. Find more information on Audio Conferencing here.

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