Commercial Security Deposit Replacement Continues to Offer Relief
NEW YORK, Aug. 31, 2020 /PRNewswire/ -- TheGuarantors, a fintech company reinventing the leasing experience with innovative financial and insurance products, has expanded to partner with three leading global A-rated specialist insurers to offer Securiti to commercial tenants. Securiti is the premier replacement for cash security deposits and letters of credit. Founded in 2015, TheGuarantors is a leader in financial solutions that build trust between landlords and renters in the multifamily, office, retail, and industrial segments. Headquartered in Manhattan, the company recently launched a Los Angeles office to continue their national growth.
The startup was the first to develop a commercial security deposit replacement almost two years ago, helping tenants nationwide free up significant amounts of capital to invest back into the business. For tenants, traditional deposits weaken balance sheets by tying up working capital that could otherwise be used to grow their business or obtain additional credit -- both of which reduce risk of default. Securiti is a tool for tenants that directly lowers default risk, for both new and current leases. An insurance policy designed specifically for commercial leases, it can be applied to both direct and sublease agreements, and costs an annual premium instead of a hefty collateral requirement.
TheGuarantors estimates that nationwide, businesses have at least $125 billion tied up in security deposits. These deposits are either in the form of cash or bank letters of credit, which are typically 100% collateralized. By replacing traditional deposit requirements with a Securiti bond, businesses can get 3-6 months of rent (average length of security deposit) back as liquidity on their balance sheets.
As COVID-19 continues to upend the office space market, landlords and tenants are increasingly looking for innovative solutions to add value to both new and existing leases. With Securiti, leading landlords are able to directly support their tenants' financial health, offering an immediate and effective solution.
About TheGuarantors
The company was founded in 2015 by Julien Bonneville, a Frenchman who once found himself unable to qualify for a New York apartment without a guarantor. In 2019 TheGuarantors announced $15 million in Series B funding, bringing their total amount raised to $27 million. Their signature Residential Lease Guarantee helps individual renters gain access to more renting options and provides landlords additional protection as they seek to drive down vacancy rates. Securiti replaces the need for a costly letter of credit or cash security deposit, providing landlords instead a surety bond backed by A-rated insurance carriers. The company is located in New York City, with offices in Montreal and Los Angeles.
SOURCE TheGuarantors
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