Alaska Collection Agency Bonds Explained
In order to start a collection agency in Alaska, you have to fulfill the licensing criteria of state authorities. This process includes posting a collection agency bond.
The purpose of the bond requirement is to ensure that you will comply with applicable state laws in your operations as a collection agent. Thus, it protects your customers.
In the three-party contract that the bond constitutes, your company is the principal that has to get bonded. The Alaska Department of Commerce, Community, and Economic Development is the obligee. The third entity is the surety, which backs your business by providing the bond.
Questions about Collection Agency Bonds in Alaska
Who needs this bond?
To start your operations in the state, you need an Alaska collection agency license from the Division of Corporations, Business and Professional Licensing at the state Department of Commerce, Community, and Economic Development. One of the main requirements that you have to fulfill is to obtain a $5,000 surety bond. It guarantees your compliance with Title 8 of the Alaska Statutes.
How much would the bonding cost?
Collection agencies have to post a bond amount of $5,000 to become licensed. Getting bonded entails covering only a bond premium, which is a fraction of this amount. It depends on the strength of your personal and business finances.
How is your surety bond cost set? The most important factors that shape it include your personal credit score, company finances, and any fixed and liquid assets you may showcase. Your surety examines these indicators to assess the bonding risk involved. The lower it is, the smaller your bond price would be.
|Alaska Collection Agency Bond Cost Based on Credit Score|
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Collection agency bond||$5,000||$100||$100-$125||$125-$250||$250-$500|
Is it possible to get bonded with bad credit?
Lance Surety Bonds runs its Bad Credit Surety Bonds program for applicants facing financial issues such as low credit scores, tax liens, bankruptcies, and civil judgments. You can use this bonding option if your finances are not in the best shape.
The bad credit rates are in the range of 5% to 10% because of the increased bonding risk. Due to our close partnerships with a long list of A-rated, T-listed surety companies, we can offer you a great bonding option despite your credit situation.
How do I get bonded?
The first step to launching your bonding process is to fill out our online application form (it takes 5min). Once we obtain your full paperwork, we can assess your exact quote. Then you can purchase your bond online. We will send you both a digital and a paper version.
Looking for more in-depth information on the bonding process? You can review our detailed How to Get Bonded page.
In addition, you can consult our bonding specialists by calling us at (877) 514-5146.
What happens if I receive a claim against my surety bond?
The bond functions as a safety net, protecting your customers against illegal actions that you may commit in your professional capacity. If a party suffers damages, they can file a bond claim. Through it, they can demand reimbursement of up to the bond amount, which is $5,000 in this case.
As written in the bond indemnity agreement, you are liable for all costs on proven claims. Initially, your bond provider may pay them, but you have to compensate it in full. Thus, it is best to avoid problematic situations that can give rise to claims, as they can hurt your business both financially and in terms of reputation.
Still Have Questions? Check Our FAQ Pages
What Our Clients Have To Say?
Kimberlee AblesQuick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew PoincotLong story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie MartinezWe decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!