Alaska Collection Agency 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.

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.

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.

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.

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.