Information on Payday Loan Bonding
SuretyBonds.com is legally licensed to issue payday loan bonds in all 50 states.
At SuretyBonds.com, we know that getting a surety bond can be confusing. To help make the process quicker and easier for our clients, our expert surety specialists have developed this guide to payday loan bonds.
These bonds are used to protect consumers — which, in this case, are borrowers — from the wrongdoings of payday loan brokers and other small lending companies. Depending on the jurisdiction, payday loan bonds might also be called “small loan license surety bonds” or “deferred presentment provider surety bonds.”
State Specific Costs by State
Bond costs and requirements vary greatly by state as the bond amounts and regulations surrounding each license are established on a state level. Select your state below for more information about Payday Loan Bonds in your area or call 1 (800) 308-4358 to speak with a surety expert.
Pay a low rate for your bond
Payday loan bonds cost 1-5% percent of the bond amount for applicants who qualify for the standard market. This means individuals with good credit can expect to pay $100-$500 for a standard $10,000 small loan license bond. To determine your exact surety bond cost, contact us now to get a free, no obligation surety bond quote!
Don’t let your bad credit stop you
Don’t worry if your credit score is less-than-stellar. SuretyBonds.com has an exclusive Bad Credit Bonding Program, which means individuals who have low credit scores can still be approved for the bond they need. Don’t let a poor credit score stop you from getting the bond that’s required to open your small lending enterprise.
Get your bond today
Some bond companies shy away from issuing these bonds due to their perceived stigma, but SuretyBonds.com is more than willing to work with payday loan companies. To get your small loan license bond as quickly and easily as possible, contact a SuretyBonds.com surety specialist online or by phone today. You’ll receive a free, no obligation price quote within one business day of your application.
Learn more about small loan license bonds
In many states, business owners must purchase a surety bond before they can get a payday loan business license. To guarantee that you fulfill all licensing and registration requirements, consult with the local and/or state office that regulates the industry in your area.
If an employee of your bonded lending company doesn’t perform the agreed upon service or defaults on an agreement in some way, a claim can be filed against the bond and the surety bond company can be required to reimburse the borrower. The bonded payday loan company will then have to reimburse the surety.
Consumers who need a payday loan should always work with a bonded lending company. Why? To ensure that the broker will appropriate the borrower’s funds correctly and ethically upon payment. As a payday loan broker or lending company, it’s important that you post a small loan license surety bond to instill confidence in your customers that you’ll perform your duties according to the law.