Former football star Shimon Gershon has launched a new fintech company, Direct Guarantees, with an investment of 12 million shekels. The platform is designed to let apartment renters issue a guarantee without a cash deposit, online and in about five minutes, as an alternative to bank guarantees and cash deposits.
According to the company, renters using the service will avoid tying up their credit line, while landlords will receive protection of up to three months of rent. The guarantee costs 6.5% of the guarantee amount annually, paid monthly. Direct Guarantees said it is already working with real-estate companies including Mivne Real Estate, Rent It and City Boy, mainly on long-term rental projects.
The company also said it is advancing a partnership with Phoenix Smart. Under that cooperation, renters will be able to access moving-related insurance through the platform, including contents and third-party liability coverage, as well as a moving loan.
Gershon, a former captain of Israel’s national team and a former player for Hapoel Tel Aviv and Beitar Jerusalem, has also built a music career, published a children’s book series, and moved into business. He said, “Israel today needs real financial solutions,” adding that the rental market still involves complicated guarantee procedures that force tenants to part with a lot of money and landlords to compromise.
