Pawnbroker Bond

Each surety bond has a total bond amount required, which refers to the coverage it offers to claimants. Let’s take Florida pawnbroker bonds as an example. The state requires a $10,000 surety bond, which means that in case of a claim a pawnbroker might be liable for sums up to that amount. A claimant can get a maximum of $10,000– though if there are more claimants, the sum is split among them.

However, to get bonded, pawn shop-owners do not need to pay the full amount upfront. Instead, they make yearly premium payments that only constitute a few percent of the total amount. Applicants with a good credit score can pay as little as 1% of the total bond amount. Take a look at the table below for a breakdown of bonding costs by state, and expected premiums based on credit score brackets.

Surety bond companies often evaluate other factors besides your credit score, such as items in your credit report, your financial statements, or your resume. Our What Does a Surety Bond Cost? page provides more detail on the factors that determine your premiums.

Pawnbrokers bonds aren’t considered high-risk, so you shouldn’t have any problems getting bonded with bad credit. However, bad credit applicants are subject to higher premiums, so it’s important to choose your bonding agency carefully.

Lance Surety Bonds has rich experience in working with applicants with credit issues, so we can help you get the lowest possible premium. In our experience, you will rarely be required to pay more than 5%-10% of the total bond amount.

Keep in mind that some red flags which might prevent you from getting bonded are an open bankruptcy or an unpaid child support payment.

We’ve created a simple and straightforward application process. After you submit our online application, we’ll contact you and give you a free bond quote. Our surety agents will guide you through the rest of the application process, so that you can get your bond as fast as possible.

Under normal circumstances, we’ll mail your original bond form in as little as one or two business days, and email you a digital copy.

It’s essential that you know what you are responsible for in order to avoid a claim against your bond. Not only can bond claims be costly, but they can lead to the revocation of your business license, because bonding companies may refuse to underwrite bonds for applicants with previous claims.

Usually, the best course of action is to reach a settlement with the claimant, without going to court. If your dispute with the client is well-documented and you haven’t done anything that breaches the bond agreement, you may go to court and fight the claim. Sureties can often help with legal assistance.