Having a virtual office can "add prestige" to a small start-up's image, say industry experts.

The Virtual Office, a firm which provides virtual office facilities including telephone answering services, claims that having a virtual office allows small businesses to present a more reassuring image to prospective new clients.

A spokesperson for the firm explained how this system could benefit start-up businesses.

She said: "It is a combination of reduced costs and the fact that you don't have to commit to having office space, but still get the benefits of having a prestigious address and a London telephone number.

"It gives a better image. A lot of people still give out their mobile number but it means that if clients ring up and can't get through to the mobile they can still get through and speak to someone."

A virtual office is a term used to describe shared office services such as a business address, mail, phone and fax services as well as web-hosting and meeting and conference facilities.

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