Confused about Financial Guarantees? Imagine you're a nepo baby in Bushwick looking for an apartment You found a year lease for $6.7k a month but the landlord requires a full-year security deposit Your rich parents put up the security deposit (aka Financial Guarantee) for you

Security Deposit = Financial Guarantee (Assurance that rent will be paid) Rich Parents = Delegator/Underwriter (Put up money for their nepo baby's security deposit) Nepo Baby = Operator/Borrower (Need security deposit from rich parents for their dream apartment, pays rent to landlord) Landlord = User (Receives rent from nepo baby, protected by security deposit in full if they bail on the lease early)