Payday Loan Bonds
We offer the following Payday Loan Bonds:
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What is a payday lender bond?
In many states, including Illinois, Virginia, and Wisconsin, payday lenders must post a surety bond in order to be legally licensed. This bond is most commonly known by two names: "Payday Lender Bond" or a "Payday Loan Bond." A Payday Lender Bond is a contract intended to protect the state and customers from harmful or illegal business practices.
How much does a payday lender bond cost?
A payday lender bond generally costs between 0.7% and 3% of the bond amount. Pricing of a surety bond is based primarily on the financial strength of the principal, while also taking into account the number of business locations you intend to operate and your personal credit rating.
Required bond amounts vary by state. See the chart below for more information.
Cost of Payday Lender Surety Bonds
| State | Bond Amount | Cost* (Annual Premium) |
|---|---|---|
| Illinois | Varies | 1% of bond amount |
| Kansas | Varies | 1% of bond amount |
| Maine | $50,000 | $375 |
| Minnesota | $500,000 / $1,500,000 | $3,500 / $8,500 |
If you wish to be bonded in multiple states, you may be required to disclose a full set of financial statements as part of the underwriting and pricing process (3 years Ending Balance Sheets and Profit & Loss Reports).
| State | Bond Amount | Cost* (Annual Premium) |
|---|---|---|
| Illinois | Varies | 1% of bond amount |
| Kansas | Varies | 1% of bond amount |
| Maine | $50,000 | $375 |
| Minnesota | $500,000 / $1,500,000 | $3,500 / $8,500 |