Michigan Non-Depository Sales Finance Company Bond Guide
If you provide consumer sales financing with no deposit in Michigan or operate an out-of-state depository institution, you’ll need this surety bond.
Bond Overview
- Purpose: To guarantee finance companies operate ethically and uphold state laws
- Who Needs It: Non-depository sales finance company and out-of-state depository institutions
- Regulating Body: The Michigan Department of Insurance and Financial Services (DIFS)
- Required Coverage: $20,000; $10,000 for additional locations
- Premium Rate: $200 for the $20k bond, prorated based on purchase date
Read on to learn all about the bonding process.
What Is a Michigan Non-Depository Sales Finance Company or Depository Institution Bond?
Companies that provide financing for motor vehicle sales or other consumer sales without a deposit in Michigan need to file a $20,000 bond for licensing.
Out-of-state depository institutions and banks operating in the state also need the same $20,000 bond.
This type of surety bond creates a financial guarantee that finance companies will comply with state laws and regulations.
How Much Do Michigan Sales Finance Company Bonds Cost?
The $20,000 non-depository motor vehicle sales finance company bond costs $200 for a 1-year term. However, your exact premium will be prorated based on the June 30 expiration date.
Additional branch locations require a $10,000 bond each. The $10,000 bonds require underwriting review to determine pricing, starting at $100. Apply now to get a free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Michigan Non-Depository Sales Finance Company Bond Work?
This bond creates a legal contract between the following parties:
- Principal: The sales finance company filing the bond
- Obligee: The Michigan Department of Insurance and Financial Services requiring the bond
- Surety: The provider issuing the bond
As the principal, you are financially liable for upholding the bond terms and all applicable state rules and regulations.
How Do I Get a Motor Vehicle Sales Finance Company Bond in Michigan?
To get your bond, submit a quick online application. We’ll provide your free quote within one business day.
You can complete the purchase online and receive your official documentation instantly via email.
If you have any questions along the way, our experts are available to help — just call 1 (800) 308-4358.
How Do I Renew My Non-Depository Sales Finance Company or Depository Institution Bond?
These bonds expire annually on June 30. We’ll send you renewal reminders via email and text to ensure you maintain active coverage.
Pay the renewal invoice and file the continuation certificate with the Department of Insurance and Financial Services before June 30.
