Office security deposits are very capital intensive for business tenants, often reaching the equivalent of 1-6 months of rent per lease. Security deposits are often the main barrier of entry into office spaces. While the risk of losing the deal because of charging a deposit is high, there is still a need for cash deposits as landlords use them to mitigate the multiple risks that lurk in any office lease.
Salaryo, a NYC based startup is offering a digital deposit financing service which benefits both tenants and landlords. The service eliminates a cash flow hurdle for tenants, while providing better liquidity to landlords and workspace operators. Tenants apply using a fully automated application that only takes about 3 minutes to complete and operators are paid within 24 hours of approval, making the process faster and easier, adding an additional benefit for brokers.
Salaryo for Operators:
Remove the entry barrier
Potential tenants are likely to be wowed by the office tour, but are often deterred by the upfront costs. As a result, landlords may be enticed to offer discounts on the monthly rent, which can harm revenue. By offering to finance the deposit, Salaryo can decrease the tenant’s upfront cost enabling landlords to reach full occupancy while maximizing revenue.
Reduce treasury costs
Collecting deposits and processing refunds to individual tenants is an inefficient and costly exercise. By using Salaryo, operators and landlords receive access to a “one stop shop” solution for their deposit needs, saving precious hours of back office work and avoiding substantial treasury costs. All Salaryo payments are processed via the ACH network within 1 business day, which saves landlords and operators the typical reconciliation periods and high costs of credit card processing and wire transfers.
Salaryo for Brokers:
Shorten the deal cycle
Security deposits are a financial stressor that may cause tenants to heavily consider the commitment, which in turn prolongs the broker’s deal cycle. By financing the deposit, Salaryo removes this potential dealbreaker. The 3 minute onboarding process and payment to the workspace within 24 hours, enables the broker’s clients to move in the following day.
Get that extra commission
Many workspaces pay brokers an extra commissions after their clients stay in the office for 12 months. Use Salaryo to give your tenants their deposits back and keep them happy in their office to get you that extra commission.
Salaryo is the first fintech startup to offer security deposit financing to office tenants of top workspace operators. The company was founded in 2017 and is a graduate of the Barclays-Techstars fintech accelerator.