Bailsman vs. Current Security Deposit Market
As known, several business sectors require security deposits as a part of the business transaction. In other words, the transaction cannot take place if the security deposit is not paid. The rental market (both residential and commercial) is the biggest sector where security deposits are a prerequisite before the transaction can take place. In both real estate and commercial sectors, the owners require a security deposit in the majority of cases to insure themselves against the damage or theft of their property. The amount of the deposit is usually related to the length of the rental period, which can become quite a significant sum.
Global residential security deposit funds are estimated to be more than $300 billion USD, a staggering amount of money. The size of the commercial real estate rental market is estimated to be even more than residential, reaching about over 500 billion USD, globally. Moreover, the accommodation industry is even larger. The global hotel and motel industry’s total revenue was valued at $722.9 billion in 2016. Such enormous expenditure takes the toll on the customers and creates an amount of financial funds being locked up unnecessary.
Bailsman aims to reduce these costs and enable clients to unlock their funds by replacing their security deposits for guarantees, all based on their current credit status. Clients don’t need any extra proof or collateral to get a guarantee, the reply to the request is given based on person’s financial credibility and previous credit history.
For clients, Bailsman increases the probability to get a positive response to a guarantee request, as Bailsman cooperates with several reputable corporations and financial institutions on the market and enables to add co-applicants. As so, both clients and landlords benefit as the clients do not need to lock their funds or take loans and landlords receive the needed guarantee their possible claim is always covered.