# Zero Capital™ URL: https://www.leasesurance.co/zero-capital Title: Zero Capital™: Commercial Lease Cover Without Deposits | LeaseSurance Summary: Zero Capital™ replaces bank guarantees and cash deposits with insurance-backed commercial lease cover, priced per portfolio from 24 to 36 months of ledger data. --- Commercial · Zero Capital™ Deposit-free commercial leasing that replaces expensive bank guarantees and cash deposits. Cover is priced against your own portfolio's risk profile and goes wider than a traditional deposit. The monthly fee is tax deductible. How It Works ## Insurance-Backed Protection, Priced Per Portfolio {#how-it-works} Tenant profiles, risk exposures and lease structures differ from one commercial portfolio to the next. Zero Capital™ has no fixed pricing tiers. Each proposal is built from your portfolio's own risk profile and claims history. - Tenants pay a small, affordable monthly fee instead of a large upfront cash deposit or expensive bank guarantee - Coverage levels are set per portfolio from a detailed risk assessment, not a standard industry rate - Protection covers rent arrears, property damage, early termination, legal costs, and cleaning/restoration - For tenants the monthly fee is a tax-deductible operating expense, materially cheaper than locked capital - No suretyships, no bank guarantees, no capital locked up for the lease term - Claims run through a structured insurance channel, with payouts averaging 7 to 14 days [Request a Proposal](https://www.leasesurance.co/contact) [View Governance](https://www.leasesurance.co/risk-governance) ### Custom Proposals {#custom-proposals} Every portfolio assessed individually. Pricing based on your data, not industry averages. - **24-36** — Months Ledger Data - **100%** — Portfolio-Specific Coverage ## What Zero Capital™ Covers {#coverage} Exactly what is protected, and how the product responds at lease end. ### What Is Covered {#what-is-covered} - Rent arrears: outstanding rental payments at lease end, including the notice period - Property damage: physical damage to the premises beyond fair wear and tear - Early termination: losses arising from a tenant vacating before the lease expires - Legal and recovery costs: costs incurred in pursuing amounts owed by the tenant - Cleaning and restoration: costs to return the premises to a lettable condition ### Coverage Notes {#coverage-notes} - Cover levels are set per portfolio from your risk assessment, not a fixed industry rate - Coverage applies from lease commencement and remains active for the full lease term - If the tenant stops paying the monthly fee, the landlord retains full protection for the lease term - Claims are assessed at lease end based on the final account and supporting documentation - Every exclusion is set out in the policy schedule, so there are no hidden terms Comparison ## Why Lease Insurance Replaces Bank Guarantees {#comparison} Suretyships and bank guarantees take weeks to arrange and tie up working capital for the whole lease term. Zero Capital™ costs less, starts immediately and covers more. Cash Deposit ### Traditional Deposit {#traditional-deposit} - Large upfront capital outlay (1-3 months' rent) - Capital locked in trust for the full lease term - Typically covers 1-2 months of rent at most - Complex trust accounting and reconciliation - Refund disputes are common and time-consuming Bank Instrument ### Bank Guarantee / Suretyship {#bank-guarantee-suretyship} - Requires bank facility or credit approval - Ties up the tenant's banking facility limits - Weeks of bank processing before it is in place - Annual facility fees and bank charges - Calling the guarantee is a lengthy legal process LeaseSurance ### Zero Capital™ {#zero-capital} - A small monthly fee instead of upfront capital - Coverage exceeds traditional deposit levels - Activates immediately, with no bank approval - Monthly fee is a tax-deductible operating expense - Claims processed through structured insurance channel ## Claims Process {#claims-process} When a commercial lease ends, the claim follows a documented path. No legal proceedings are required. - At lease end, the landlord or property manager prepares a final account statement covering arrears, damages, and restoration costs - The claim is submitted through the LeaseSurance platform (LeaseHub™) with the supporting documents: inspection reports, invoices and the final account - LeaseSurance assesses the claim against the policy terms and coverage schedule - Approved claims are settled directly from the dedicated cell captive, not from a general fund - The process is materially faster than calling a bank guarantee or pursuing a suretyship claim through legal channels ### Structured Claims {#structured-claims} Final account → Submit claim → Assessment → Settlement. One documented path from lease end to payout. ## How We Underwrite Commercial Portfolios {#underwriting} Zero Capital™ pricing is never generic. Every commercial portfolio is assessed on its own performance data, not on industry benchmarks. - We analyse 24 to 36 months of ledger data from your portfolio: arrears patterns, vacancy rates, tenant profiles and past claims - Premiums are calculated per portfolio, reflecting your specific risk profile and claims history - We assess tenant creditworthiness during underwriting, but the landlord is the insured party, not the tenant - Renewal pricing applies to new leases only. Existing tenants are not repriced mid-lease - Underwriting results are ring-fenced in a dedicated cell, so your portfolio's good performance benefits your portfolio ### Portfolio-Specific Pricing {#portfolio-specific-pricing} Your data. Your risk profile. Your pricing. Never cross-subsidised. Tax Benefit ## The Monthly Fee Is Tax Deductible {#tax-deductible} Unlike a cash deposit (which is a refundable asset, not an expense), the Zero Capital™ monthly fee is classified as an operating expense and is fully tax deductible for the tenant. This means the net cost of lease insurance is materially lower than the opportunity cost of capital tied up in a deposit or bank guarantee facility. For commercial tenants, this distinction matters. The monthly fee flows through the income statement as a deductible operating cost. A cash deposit sits on the balance sheet as a non-deductible current asset, earning minimal interest and producing no tax benefit. ### Operating Expense {#operating-expense} The monthly fee is a deductible operating cost, not locked capital. It costs less in effect than a deposit or a bank guarantee. ## Replace Bank Guarantees With Insurance-Backed Protection {#next-steps} Speak to us about putting Zero Capital™ in place across your commercial portfolio. Every assessment starts from your own portfolio data. [Speak to Us](https://www.leasesurance.co/contact) [Residential? See Zero Deposit™](https://www.leasesurance.co/zero-deposit) [Explore LeaseHub™](https://www.leasesurance.co/leasehub) [Risk & Governance](https://www.leasesurance.co/risk-governance)