What are Finance Broker Surety Bonds?
Finance Broker Surety Bonds ensure that the business, its principals, agents and employees fulfill their duties in accordance will all applicable state laws and regulations, and that all funds received from their clients are allocated for the appropriate obligations. If the principal (finance broker) causes a loss, a claim can be filed against the bond.
If the claim is validated, the surety will pay out up to the penal sum of the bond to resolve the claim. Once a claim has been resolved, all monies paid out by the surety must be reimbursed by the principal, including any attorney’s fees incurred by the surety in the defense of the claim.
Who is required to have a Finance Broker Surety Bond?
Finance Broker Surety Bonds are required for individuals and businesses performing the negotiation and execution of any tasks as a broker in direct relation to loans made by a finance lender.
Which states require Finance Broker Bonds?
Pacific Surety proudly offers Finance Broker Surety Bonds in the following states:
If you do not see your state listed, please contact us and our knowledgeable underwriters will assist you.
What is the bond amount for this Surety Bond?
Amounts for Finance Broker Surety Bonds vary and are set by the local rules and statutes regulating the industry. Therefore, bond amounts and requirements will fluctuate from bond to bond. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How much do surety bonds for Finance Brokers cost?
Pricing for Finance Broker Surety Bonds varies, and your premium will be based on the following factors:
- State the bond is required in
- Amount of the bond
- Term length of the bond
- Personal credit for all owners with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay between 1%-5% of the bond amount. Qualified applicants could pay as little as $100 annually for a $10,000 Finance Broker Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get this bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Finance Broker Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How are Finance Broker Surety Bonds purchased?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
How are bond claims handled?
Unlike insurance, which protects your business, Finance Broker Surety Bonds protect your clients. If an individual is harmed due to the principal’s misappropriation of funds or any violation of the governing laws, the harmed party can file a claim with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Claims can be detrimental to your business. Not only do they cause financial harm, they make it very difficult, if not impossible, to get bonded again.