Everything you need to know about phone installment purchases

Smartphones have become an integral part of lifestyle and work. Providing employees with a company smartphone ensures a better and more feasible hold over the work. But how to source these smartphones, buy them, lease them, or rent them? Or are there even more options? Let’s find out!
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What is the mobile phone installment experience like?

Purchasing a smartphone at one time and paying it in installments has been an option for quite some time. Not only the manufacturers such as Apple or Samsung offer installment purchases – retailers and even distributors offer the same financial option as well.

All you need is a minimal downpayment during the time of the purchase. Many companies have cut down on this and lend a smartphone on zero downpayments as well.

The cost of the smartphone is later covered with a monthly payment in installments. Generally, you get an option to choose a time period between 3-48 months, within which you would pay the full amount.

Installment purchase often comes with an interest. And, the longer the time period to pay the amount, the larger the interest fee gets. However, there are also installment offers available without any interest.

How installment purchase differs from cell phone leasing?

The alternative to financing or getting the phones in installments is, leasing the smartphone. Here you are given a fixed time period within which you can use the smartphone, and return it later when this time limit is exhausted.

You pay a fixed leasing amount for the entire time on a monthly, biweekly, or weekly basis. With this option, the workforce gets an option to upgrade with every release and be on top of the latest technology.

phone installment purchase

More often than not, leasing is cheaper than buying a smartphone. You get to own the smartphone for a fixed interval of time. Different smartphone leasing companies do it for different time periods and generally, it lies around 12-36 months.

Learn more here:

Leasing iPhones

iPhone provides a leasing period of at least 12 months. Although, it also has plans for 24 and 36 months lease periods.

Apple offers two financing offers – Fair Market Value and $1 Buyout. For both options, the minimum purchase order must be $4000 and up to 25% of the amount is financed.

To end the lease term you either need to return, refresh, or purchase at fair market value. For a $1 Buyout, you only need to pay an amount of $1 to own the smartphone.

This option is especially for businesses to offer them a simple and cost-effective way of owning Apple products.

Leasing Samsung Galaxy phones

For Samsung smartphones, again, the process of leasing is very simple and convenient. All you need is a simple identity verification before selecting your smartphone. The next step involves paying a security amount to lease the smartphone on an RMI (Rental Monthly Installment).

You get a 0% APR (Annual Percentage Rate) for a period of 24 months and get an option to exchange to a new Samsung phone after 12 months, provided the mobile phone is in good condition.

What is the phone installment purchase process?

Smartphone providers have made the process of installment purchase extremely simple. A credit or debit check is required to be eligible for an installment loan. Earlier, one needed to visit the stores to complete the entire process, today this can be easily done online.

All you need is a simple registration and profile verification on their website, just to understand you are an authentic business. Once done with this, all you need is to choose your preferred smartphone and apply for an installment.

Once verified or approved, you are generally required to make an initial downpayment of some amount. Although it depends on the financing policy of the company.

Many smartphone manufacturers don’t require a downpayment. You get an option to choose the time period within which you want to pay the amount in full on a monthly basis. This time period lies around 3-36 months generally.

If for some reason you fail to pay the amount within this time period, an interest fee will be applicable.

In fact, if you miss paying the amount for any month, an interest fee may be applicable in this case also. Your device can be taken back as well.

Let’s understand by example the installment policy for iPhone and Samsung smartphones.

iPhone installment process

For an iPhone, once qualified, you can apply for an installment loan and can get a 0% APR installment loan for 24 months.

All you need is an eligible small business or a corporate/commercial credit or debit card. After you pay the first installment payment, a certain amount will be automatically charged on a monthly basis on your credit or debit card.

Samsung installment process

Samsung also has a “buy now, pay later” option with Samsung Financing.

To apply for this, firstly, your purchase should be over $350 for smartphones. You need to fill out an online application and get your credit card and you can pay for it later on a monthly basis.

With zero down payment, Samsung makes it easier for its users to buy smartphones during the time of an emergency requirement without any immediate dip in their bank balance.

Device as a service: The “third way” of smartphone procurement is renting them!

Usually, both with leasing and installment purchases, there’s a third party involved in providing the financial services. This can be a problem, especially when something goes wrong and the phone breaks or needs a repair. Usually, neither the manufacturer/retailer nor the financial partner are eager to jump in and take care of the broken device and its repairs.

This is different with rental devices: Here, clients don’t rent a specific phone per se, but the usage of a fully functional phone. In consequence, a service company such as Everphone will simply exchange the broken device quickly. The customer won’t have to deal with insurances, lessors, or banks.

This gives technical buyers and procurement experts a third option: Instead of buying or leasing, there’s also the possibility of renting. It is the most flexible option, as it is fully needs-driven and the rental period simply ends when the employee leaves the company.

Is installment purchase or leasing better than renting phones?

All options – purchasing a company smartphone, leasing it or renting it, have their pros and cons.

Here’s a comparison between all three to help you make your decision process easy.

Three ways of smartphone procurement




Pay in monthly installments or the entire amount in one go. Pay monthly and upgrade to a new phone in a year or two. Pay monthly and upgrade to a new phone in a year or two.
Can get 0% interest option on installments. Saves money than incurring the cost of a new phone with every release. Needs-driven, rental ends with employment termination.
Needs identity verification before purchase. Needs identity verification. Needs identity verification.
Need a credit history check. Need a credit history check. Need a credit history check.
You don’t hold the ownership of the smartphone until you pay the full amount. You have the ownership of the smartphone until your leasing period ends. Phone-as-a-Service provider owns devices and takes care of them.
You need to ensure you have the EMI amount to pay every month. Need to pay a certain amount every month. Monthly payments (can be set off against tax as operational expenditures)
The value of the smartphone drops over years, and you still pay for the value back in time. Upgrade to a new phone avoids the value drop, but you pay a consistent monthly amount. Upgrades to newer models possible after 2 years at no extra costs.

With these options, you can easily find one that suits best in your case.

Everphone provides mobile phones and tablet rentals that make employees manage their personal and professional work on one device. You can choose a pricing model that fits best as per your needs.

Talk to our expert team to get more info and a non-binding quote.


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