The application of Bailsman in the car rental industry
All drivers, who have once or twice rent a car either in your homeland or abroad, know how tedious the whole process is: finding a trustworthy car rental company, wait for the available car that will suit, signing the contract and paying the security deposit. All this process is necessary even if you rent a car for a couple of days. There are even more problems if renting a car abroad. According to Expedia.co.uk, if you rent a car overseas and pay the security deposit in your national currency, you may be unpleasantly surprised when it’s time for reimbursement. For instance, if you pay the security deposit in pounds sterling and your rental provider works in a different currency, fluctuations in currency value could mean that the deposit you get back could be less than the amount you initially paid. As you can see, additionally to having to pay the security deposit in the first place, you may even end up losing money.
This is not the only problem. When renting a car, the rental security deposit will be frozen from the client’s credit card for the rental period. As security deposits for the car rental can be even higher than the car rental fee itself, this practice can cause great problems to those who are close to their credit limit or don’t own the credit card at all. But what makes things even more difficult, is that in many car rental offices the security deposit is not released at the end of the rental period, and can be held for much longer, in case of any future claim.
Bailsman offers an effective solution to the security deposit related problems. It provides a third party guarantee to the car rental company for a small fee that is paid by the client, meaning there is no longer need to make a security deposit payment and tie up cash. At the same time, Bailsman allows car rental companies to ask for the needed security deposit amount, free of charge, and without fear of frightening potential clients away.
In the car rental market, Bailsman brings great value to the customer, as their funds will not be locked up for too long and car rental companies can still have their guarantee for the possible claim. Sales channels and partners Bailsman enables car rental companies to gain more potential clients and transactions (e.g. those without credit cards) while also offering more options to their clients. Partnerships could be established with different car rental agencies like Avis, Europcar, Sixt or Hertz. As a result, a win-win situation created for all:
- Сar rental agencies receive the needed guarantee.
- Сlients do not have to lock up their finances for a long period of time and worry about the currency exchange rates if they are abroad.