The solution presented by Bailsman is multi-purpose, as it can be implemented in every business sector where security deposits and guarantees are needed. Initially, Bailsman has set its business in four sectors: residential and commercial real estate rental, accommodation, and car rental. The growth opportunities for Bailsman are huge, as global security deposit funds across these sectors are estimated to be more than $1.5 trillion.
Residential Real Estate Rental Market
When it comes to the real estate sector, Bailsman’s solution is perfect for tenants who don’t have the required sum or simply prefer to spend it on something else. In fact, this sector, where more than $300 billion is currently “stuck” in security deposits made by tenants to landlords, will be the initial market where the Bailsman’s solution will be introduced.
Commercial Real Estate Rental Market
Bailsman is going to expand its solution to the commercial rental market, which faces the same problems that exist in the residential rental market. Tenants need to have and hand out large initial payments for an office space, while landlords, prefer to ask for higher security deposits in case of damage. Renting a commercial office with a security deposit backed by Bailsman offers more options for companies. For a mature company with an approved credit score, Bailsman lowers the initial costs, freeing funds to set up the office space as they wish. Start-ups and young companies with insufficient credit history will benefit from Bailsman’s services because they will be able to invite co-applicants and share costs. Both individuals and companies are suitable as co-applicants. This market is estimated to be significantly higher than residential, reaching over 500 billion USD globally.
Accommodation Industry
Another sector where security deposits are commonly used is the accommodation industry. The global hotel and motel industry’s total revenue was valued at $722.9bn in 2016. Unlike the real estate market, security deposits in this market are held from customers’ accounts. Bailsman aims to bring a solution for both accommodation providers and their customers. Replacing a security deposit with a guarantee, customers no longer need to lock up their finances on a credit card, and therefore, their credit limit will not be affected in any way. At the same time, accommodation providers are assured that they will always receive their claims. Customers with no credit can use the accommodation and don’t need to apply for a credit card. As Bailsman’s guarantee requires only a small fee from the customer, it is a more convenient solution.
Car Rental Industry
The car rental market is not as big as the sectors mentioned above, but its worldwide popularity makes it a great potential partner for the future development of Bailsman. The global market size in this industry is about $58 billion but is expected to reach $125 billion by 2022. Clients can use Bailsman as an alternative to a credit card in case they do not have one or are not excited about getting their funds booked by a service provider. At the same time, car rental companies can still have their guarantee for the possible claim.
More Sectors to Come
Bailsman plans to become a universal guarantee providing business spread across multiple sectors and connecting clients’ needs to the best offers available on the market.
About Bailsman
Bailsman offers quick and easy blockchain-based security deposit solution for clients who do not have the required sum or simply prefer to spend it on something else. Bailsman provides a third party guarantee to the merchant for a small monthly fee, which is paid by the client, instead of making the security deposit payment and tying up the cash.
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