The ONE Rental Deposit Guarantee and Rental Deposit Bank Guarantee is a unique and accepted alternative to the traditional bank guarantees or cash deposits. Fitch ratings has assigned Mutual & Federal Risk Financing Limited’s (MFRF) a National Insurer Financial Strength (IFS) rating of “AAA (zaf)” giving absolute assurance in performance and reliability for any Landlord. The Rental Deposit Guarantee Policy is mainly targeted at Franchising and Retail businesses.
New Tenants don’t have to finance, or tie up valuable security or working capital in providing bank guarantees or cash deposits to be held by the Landlord
Existing Tenants can substitute their bank guarantees and inject some working capital and liquidity into their business or reduce liabilities
Multi-store or national Tenants can free up substantial deposits which can be used for working capital, revamps or expansion etc.
Existing Tenants can ‘top up’ their existing guarantees or deposits to meet current Landlord requirements
The premium paid is an operating expense of the business and thus written off against taxable income
Opportunity cost of having released your cash or securities
This solution is with selected Banks whereby the Landlord is issued with a bank guarantee though the Bank is secured by the Mutual & Federal Risk Financing Limited guarantee instead of traditional collateral assets (cash security or fixed property). This solution is designed for Tenants who are required to provide bank guarantees by Landlords as the only acceptable form of security. However, the solution is suitable for any Tenant who either wants to replace their security at the Landlord of the Bank.