Collection Agency

Collection Agency Information

Collection Agencies are companies that pursue payment on debts owned by both businesses or individuals and many states require the collection agency surety bond. State governments require all collections agencies to be bonded. These bonds guarantee proper accounting for funds received, ensuring that money collected by debt collectors will be properly dispersed to clients. Further specifics of what each collection agency surety bond will guarantee may vary depending on individual state’s rules and regulations. Our agency offers a variety of programs designed to help all types of debt collection agencies get approved quickly, and at excellent rates, in all 50 states.
  • 100% Secure Online Application
  • Lowest Rates
  • Approval Rate Nearly 100% (even for the less than perfect credit applicants)
First, you’ll want to contact the specific state department that oversees collection agencies about your desire to conduct business in that state. Some state’s offer checklists online, which can be very helpful. In addition to submitting an application to be become registered or licensed, most states require a surety bond be posted to guarantee compliance with their collection regulations. Getting bonded with All Commercial Surety is simple. Once your bond has been issued, you’ll submit a signed copy of the original bond to the state to be filed with your license. Frequently asked questions about the Collection Agency Surety Bond:

How much does a Collection Agency Bond cost?

Annual premium amounts are determined based on owner personal credit. Owners with stellar credit may be eligible for standard market rates, which range from 1% to 3% of the bond amount. If the owner has a low credit score, or past due items on their credit report, annual premium typically ranges between 5% to 15% of the bond amount. For most states, our high risk rate does not exceed 7.5%.

How do I get a Collection Agency Bond?

The first step is to apply for a free quote. Once you’ve been approved, your agent will provide you with the bond premium due, along with an agreement with the surety. Once you’ve paid for your bond, and provided a signed copy of the indemnity agreement, your Collection Agency Bond will be mailed out to you.

Can I get approved for a Debt Collector Bond if I have bad credit?

Yes. While many sureties only offer quotes to customers with stellar credit, we have a variety of collection agency bond programs that allows us to approve over 99% of applicants through our online application. Your annual premium will depend on your individual credit profile, but we’re able to offer very aggressive rates. Will my Collection Agency Bond work for multiple states?
No. You'll need to post a separate bond for each state that you will be conducting business in. Each state has their own bond requirements, and therefore you'll need to make sure to comply with each state's respective bond regulations.
 

Over 125 years of combined experience

As a surety bond broker, we work for YOU not the surety company.  We are licensed nationwide and appointed by 25 surety companies so that we are able to offer the best solution for all surety bond needs.  We are a small organization that strives to make you feel like part of our family.   

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Three party agreement

Surety Bond Definition: The definition of a surety bond is as follows: A surety bond is a binding agreement between three parties. This agreement sets forth a financial guarantee by one party ( “surety” ) to another party ( “obligee” ) that a third party ( “principal” ) will fulfill required obligations to the obligee, and that state, federal, and local laws and applicable regulations will be adhered to. Let’s examine each of the three parties.

Learn more about surety bonds

Bad Credit – Fast Approvals – Lowest Rates Available.

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  • Credit below 650 and/or have blemishes on credit report.
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Average cost is 5-15% of the bond amount.
  • Available for all commercial bonds.

Why does credit matter? Applying for a surety bond is similar to applying for a loan. You are asking a surety company to back you financially. Reviewing credit is the best method for the surety to understand their risk. All sureties review credit as a view only and should have no effect on your credit score. While it is true that bad credit makes it harder to obtain a competitive quote, we are committed to making sure all of our customers have access to the best possible rates. While we can’t guarantee that we can provide a bond for the most extreme bad credit situations, we strive to make sure no stone is unturned! In other words, if you are insurable, we will get it written. Contact us today and let us put together an online quote for you that will exceed your expectations.