Prior to the advent of advanced cell phones, or as they are now called, “smartphones,” the expense of getting the new devices barely broke the bank. Also the most expensive handsets may have cost little more than £450 ten years earlier. The all-inclusive network deal included the cost of these machines as well. Customers were led to think that cell phones were offered for free as part of the network deal because of this in-contract ‘financing.’ Today, the most affordable Apple smartphone from the 2018/19 lineup costs £749 (iPhone XR 64GB), while the most feature-packed costs £1,250. (iPhone XS Max 256GB).
In simple words, today’s pricing suggests you’ll pay a higher monthly fee on your latest mobile smartphone than ever before. You’ll probably note that your £60 – £80 monthly network charge requires a ridiculous volume of internet data, which you and your workers would fail to completely use. How does a company compensate only for the data that its workers need, rather than wasting money on the new models? Mobile phone leasing is the key (as you may have guessed).
The model is straightforward and makes complete sense in terms of bill differentiation. As a company, you’ll learn the value of cash flow and how making wise decisions at the start of a 24-month term will pay off when the going gets tough.
Since mobile phone leasing or the procedure to rent a new iPhone is actually financing, you should plan to spread the expense of a £749 smartphone over a period of time that is convenient for you (anything between 12 and 36 months). There will be interest added to the loan, although it would not be quite as high as you would think. Leasing allows you the option of keeping or returning the handsets at the end of the contract. If you plan to return the handsets, you will be able to save still more money by adding residual values of up to 25% towards the expense. You can hire an iPhone for a week, and a new one once the tenure is over!
Lease Telecom’s leasing arrangement is entirely tax free, giving the Finance Manager peace of mind when it comes to filing the company’s annual report. You can now shop for a SIM only airtime arrangement that matches your calls, minutes, and data use once you’ve agreed on your handsets and chosen the preferred term to lease the handsets for. Business SIM-only plans are far more popular, and we will help you find them. Leasing arrangements, unlike network contracts, do not include high capital expenses. You could also hire an iPhone for a week!