Nebraska Collection Agency Bonds Explained
Launching a collection agency business in Nebraska entails completing a licensing process with state authorities. As part of the process, you need to obtain a collection agency bond.
The bond requirement aims to protect the state and your customers. It ensures your compliance with all applicable rules and regulations.
The collection agency bond functions as a contract between three entities, with your business being the principal. The Nebraska Secretary of State is the obligee which imposes the requirement, and the surety is the bond provider that backs your agency.
Questions about Collection Agency Bonds in Nebraska
Who needs a Nebraska collection agency bond?
In order to get a Nebraska collection agency license from the Collection Agency Licensing Board at the Secretary of State, you need to post a surety bond. It is one of the obligatory requirements in the assessment of your application for a license. The bond ensures you will adhere to all applicable laws, including the Nebraska Revised Statutes, Chapter 45, Sections 601-623.
The bond amount is set on the basis of the number of solicitors in your agency and can be between $5,000 and $15,000. The Board may assign a higher bond amount, but it cannot exceed $100,000.
What is the surety bond cost?
The surety bond amount that you have to provide as a Nebraska collection agency is set by state authorities as follows:
$5,000 - one to four solicitors
$10,000 - five to 15 solicitors
$15,000 - over 16 solicitors
To get bonded, you have to pay a bond premium, which is a percentage of the required bond amount. It is formulated on the basis of the strength of your finances. This is your surety bond cost. The most important factors that shape it include your personal credit score, business finances, and your fixed and liquid assets. By examining these indicators, your surety assesses the level of bonding risk that you pose. The lower it is, the smaller your bond cost would be.
|Nebraska Collection Agency Bond Cost Based on Credit Score|
|Surety bond name||Bond amount||Credit Score|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Over 16 solicitors||$15,000||$112.5-$225||$150-$375||$375-$750||$750-$1,500|
Can I get bonded with problematic credit?
It is more difficult to get bonded if your finances are not in the best shape. However, our Bad Credit Surety Bonds program is designed for applicants with low credit scores, tax liens, bankruptcies, and civil judgements. It is a suitable bonding option if you're struggling with such issues.
The bad credit bonding rates are slightly higher - in the range of 5%-10%. This is due to the increased bonding risk. Still, we can offer you a top bonding option that best matches your circumstances. We are able to shop around for you because of our close partnerships with numerous A-rated, T-listed surety companies.
How do I obtain this bond?
In order to obtain Nebraska collection agency bond, you can follow these steps:
Our bonding specialists will prepare your free, no-obligation quote
If the price is satisfactory for you, you can buy the bond online
We will send you both a digital and hard copy of the bond
For further information on the bonding process, you can consult our detailed How to Get Bonded page.
If you have questions or need help with your application, Lance Surety Bonds' specialists are available to help you. You can reach us at (877) 514-5146.
What happens if I receive a bond claim?
Your collection agency bond serves as a protection mechanism for your customers. In case you transgress from your legal obligations, you may end up with a claim against the bond. This is how a party who has suffered damages due to your unlawful actions can demand reimbursement.
On proven claims, you have to cover the costs to compensate the claimant. Your surety may pay them at first, but you are liable in the end, as set in the bond indemnity agreement. Thus, it is best to stay away from situations that can lead to claims, which can cause financial and reputational damage to your business.