By landlords
and managers,
for landlords
and tenants.
Acconto realized that certain tenants are better served to keep cash in
their operations rather than as deposits. We wanted to solve this issue
without affecting landlords.
How it works
On behalf of the tenant, Acconto issues a standby letter of credit (“LC”) in favour of the landlord for deposit amounts (e.g. last month’s rent, security deposit, etc.) in lieu of cash
In exchange for providing the LC, the tenant pays Acconto an annual percentage fee based on the issued amount pursuant to a fee and reimbursement agreement
In the event of a default under a lease, the landlord draws on the LC, at which point Acconto remits payment to the landlord
Why Acconto?
Acconto affords commercial tenants liquidity by reducing the need for cash outlays for lease deposits
Acconto transforms the traditional lease deposit structure into an off-balance sheet arrangement
Whereas LCs from banks and other financial institutions typically require collateralization, Acconto does not
In the case of a tenant default, Landlords can draw on deposit funds independent of any statutory rules governing tenant insolvency
Partners
Are you a commercial landlord, tenant, or broker looking to learn more about Acconto’s product?
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