Small and Medium Office Telephone Systems

Rent Vs Buying a Business Phone System

For a small business, using a phone system is often the defining factor in being recognised as a serious contender in your field (as distinct from a guy with a website and a mobile phone). If your business has more than 4 staff, using a business phone system is going to steamline your communications and offer your business many features to assist your customer service efforts.

Once you’ve made the decision to purchase a business phone system, besides working out which model best suits your requirements, the next step is deciding how you will finance it.

We’ve put together some key considerations in deciding whether you should rent or buy your business phone system.

Capex vs opex

If you pay outright for the phone system, it will appear as a capital expense on your balance sheet, if you rent it will be an operating expense. The main differences are the impacts that the purchase may have on the cashflow for the business (if purchased outright). Operating rental agreements generally do not require balance sheet disclosure, and hence will not affect the financial gearing of the company. In addition, it will have a marginal impact on the return on assets managed ratio. You can also structure financing payments to accommodate budgetary and cost constraints.


High technology equipment quickly becomes outmoded and obsolete. Renting this type of equipment offers a low entry-level cost. Renting further provides the freedom to upgrade or change equipment when the need arises.Agreements can be structured to best suit institutional requirements in terms of repayment periods and repayment structures. Contract periods can further be tailored to suit the useful life of user groups, asset types or individual pieces of equipment. You should consider speaking with your supplier as to whether you will own the business phone system outright at the end of the rental period.

Improved customer service and retention

Every business aims to deliver high-quality customer service and these systems help you do just that – in every way your clients are handled professionally. Features such as caller-ID, auto-attendant, call transfer and conferencing mean that your business communication needs with your clients and business partners will be easier, more efficient or more welcoming.

Advantages and Disadvantages of VOIP

If you haven't already made the move to VOIP, it's probably something you've considered as a small business owner.

VoIP (Voice over Internet Protocol) is simply the transmission of voice traffic over an internet connection. It's popularity stems from the savings that can be made using VOIPvscalling using traditional telephone networks. Rough estimates suggest that businesses can save roughly 50% from their monthly phone bills.

To work out if VOIP is with for you, here are someadvantages and disadvantages:

Low Cost

It offers cheaper international long distance rates, which are generally one-tenth of what is charged by traditional phone companies. VoIP business phone system


Its portability makes it a very good option for travelling, enabling you to avoid expensive hotel phone charges and mobile phone roaming charges. What one requires is just a high speed connection where one could plug the adapter into and people could reach you at your local number irrespective of your location.

Video Conferencing

VoIP enables advanced bandwidth capabilities and improved video-conferencing and at a reasonable price.


VOIP phone system relies on an Internet connection and therefore can be affected by the quality and reliability of your broadband Internet service and sometimes by the limitations of your PC. Poor Internet connections and congestion can result in garbled or distorted voice quality. If you are using your computer at the same time as making a computer VOIP call, you may find that voice quality deteriorates dramatically.

Safety during power outages

During a blackout a regular phone is kept in service by the current supplied through the phone line. This is not possible with IP phones, so when the power goes out, there is no VOIP phone service. In order to use VoIP during a power outage, an uninterruptible power supply or a generator must be installed on the premises.


Security is a main concern with VoIP, as it is with other Internet technologies. The most prominent security issues over VoIP are identity and service theft, viruses and malware, denial of service, spamming, call tampering and phishing attacks.

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