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What is mobile phone leasing?

What is mobile phone leasing?

It’s no doubt that we live in an increasingly technological world, dependent on SMART devices which enhance our daily lives, and which more recently, have provided a means for working from home. The impact of SMART devices is immeasurable, and the constant evolution of the latest technologies enabling us to connect and achieve more virtually is pushing our dependency on these devices further.

As technological capabilities advance and improve, so too does the price increase of maintaining a network of devices, especially for businesses that rely on access to high-spec devices for faster mobile workplace interaction, productivity and profitability.

Traditional business mobile contracts consist of a number of mobile device handsets bundled together with a communications plan, including minutes and data across a fleet of employees. As the cost of devices increased, so did the lengths of the contract, from 12 months to 24 months. This meant that the rising costs of devices could be stretched over a longer period, but which maintained a monthly spend that business were used to.

Problem solved? Not really. The cost of devices continues to sore, as does the invention of other mobile device ‘must-haves’. Unless contracts stretch to 36 months and beyond – a proposition which is unrealistic in the long term – businesses are left to choose between paying a premium price for the latest technology, or sacrificing technology (and potentially, profitability) in place of a cheaper contract.

Or are they? Enter mobile phone leasing. Put simply, your business doesn’t own the devices, you rent them. Interested? Let’s continue.

First and foremost, let’s talk about cost. Mobile leasing contracts remove the necessity to pay for the full cost of a high-spec device over an unrealistically short time frame. With no upfront payments and a fixed monthly cost, there is a great deal of flexibility and security from a financial perspective that allows you to tailor a plan to suit the requirements of your fleet, without sacrificing margin and profitability.

Alongside this, if having the latest technology is crucial to the success of your business, devices can be returned and upgraded so that both your fleet and your business stay up to date with the latest technology. Download the latest apps to maintain a competitive edge, and be confident in the fact that your fleet has access to the latest and quickest technologies to close a sale, or enhance that tricky client relationship.

And we’ve not even spoken about tax efficiency yet. Leasing your mobile handsets comes with the benefit of 100% tax relief. This includes the addition of accessories and other hardware that you may wish to include within your leasing contract.

This all sounds great, but, is mobile leasing right for you and your business? Maybe not, but if you’re a firm that requires the latest technologies across a large fleet, alongside wanting to keep an eye on potentially spiralling telecommunications costs, it’s a sensible route to consider.

Interested in talking to Associated Telecom about your business telecommunications?

If you’d like to talk to one of our communication experts, you can arrange your personalised telecoms review today.

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