Graphic designer’s £54,000 phone deal highlights growing crisis facing thousands of small business owners
Nineteen years in business. Survived a recession, a studio fire, and even Covid. But Bradford designer Gary Pride says it’s a phone contract — just five phones — that could finally shut his company down for good.
He’s staring down a £54,432 bill over ten years, excluding VAT. All for renting equipment he now says he didn’t fully understand, and can’t escape.
From survival to despair
Pride’s story is far from rare. A growing number of small business owners across the UK are finding themselves tied into lengthy, high-cost equipment rental contracts — usually signed during fast-paced telecom sales visits. Many say they didn’t realise just how expensive those “deals” would be, until it was too late.
For Pride, the trouble began in 2017, when he signed with telecoms provider 4Com. The deal included renting their HiHi phones and software, bundled with what was presented as a seven-year finance agreement.
He says he trusted the sales pitch. He didn’t expect to still be paying for it nearly a decade later.
The trap of the “universal rental”
At first, it seemed affordable. Pride’s monthly bill was just over £200 for the first two years — part of an “introductory offer,” he was told.
Then it jumped.
Without warning, he says, the bill leapt to more than £550 a month. The promotional pricing had ended. What remained was the contract — still binding, still billable, still long.
“I just feel like I’ve been conned,” Pride told the BBC, choking up mid-sentence. “I’ve not been paying myself so I could pay that bill, every month.”
He’s taken antidepressants. Struggled to sleep. Feels like he’s let his staff down.
One sentence, full stop: It’s breaking him.
A mountain of fine print
The agreement he signed was with a separate finance company, not 4Com directly. It’s what the industry calls a “universal rental agreement” — a third-party finance deal that lets tech firms push expensive hardware without bearing the cost of financing it themselves.
The contracts reviewed by the BBC clearly state this, in the fine print. But Pride says none of that was fully explained to him verbally, and the total 10-year cost was never laid out in full.
Worse, once locked in, he felt stuck.
He tried complaining. The solution? Sign a new deal, 4Com suggested, with new phones — and receive a “loyalty rebate.” Pride refused.
“I feel like I didn’t have a choice,” he said. “And no one in their right mind would’ve signed that contract, knowing the full amount.”
Who else is affected?
This isn’t an isolated mess. Thousands of small business owners across the UK are quietly enduring similar contracts, according to industry insiders, telecom advisors and small business forums.
Here’s what they’re saying:
-
Most contracts bundle hardware, software and finance into a confusing package.
-
Many small business owners feel pressured to sign quickly during on-site visits.
-
Exit clauses are often harsh, with early termination fees running into thousands of pounds.
Business telecoms expert Lisa Davies said these types of deals were “structurally abusive,” especially for sole traders and micro-businesses who don’t have in-house legal teams.
What the numbers show
To put things in perspective, here’s a comparison of Pride’s phone rental costs versus standard market options:
| Provider | Package Details | Monthly Cost (ex VAT) | Contract Length | Total Cost Over Term |
|---|---|---|---|---|
| 4Com / HiHi | 5 phones + software | £550+ | 10 years | £54,432 |
| BT Business | 5 VoIP lines, same features | ~£125 | 3 years | ~£4,500 |
| RingCentral | VoIP + app (no hardware) | £60–£80 | Rolling monthly | ~£3,000 (est.) |
One small paragraph here: Pride is paying nearly 12x the industry average.
Regulators stay quiet — for now
Unlike consumer telecom contracts, business deals are often unregulated. There’s no Ofcom-style protection. And financial ombudsman support is limited, since the finance deals are between businesses — not individuals.
That’s left many SMEs exposed. Once the contract is signed, getting out is legally difficult and financially painful.
Consumer rights lawyer Marcus Hall says it’s a “grey area” and that small businesses are in “no-man’s land” when things go wrong.
“These finance contracts are legally binding,” he said. “And they’re written in ways that make it almost impossible to walk away without consequences.”
Bigger than one man’s nightmare
Pride says the ordeal has changed him.
He’s more guarded now. He triple-checks every contract. He’s spoken to other small business owners in Yorkshire who’ve had similar experiences — some worse.
There’s a pattern forming. And it’s one that leaves the UK’s smallest firms — the ones who can least afford to lose money — carrying some of the heaviest burdens.
He still goes into work every day. Still prints. Still designs.
But some mornings, he said, it feels like he’s just working to pay a bill he never really agreed to.
