How to Get Started in the Bail Bonding Industry
It is important to get off to a good start in the bail bond industry. From obtaining a license and insurance to securing cash to bail your clients out of jail, the process of becoming a bail bondsman is considerably detailed. However, once you have a thorough understanding of the process, moving forward as a bondsman is a relatively simple undertaking. Here is a series of steps that will help you get started in a successful career.
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Instructions
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Research the industry. Talk to as many industry professionals as possible to learn how bail bondsmen conduct business. Getting to know those in the business will help you get a feel for whether the profession is even for you. If there are no bail bond businesses in your area, go to your local library and research the industry. There are also many online resources that explain the ins and outs of the trade (see Resources below).
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Register for a pre-licensing course. In states that allow commercial bail bonding, it is required to complete a course before you take your state licensing test. This course is usually given through your state's Department of Insurance and consists of 10 to 16 hours of class time. Contact your state office to obtain the registration forms. Expect to pay $50 to $100, depending on your state's registration fees.
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Prepare to take your state test. After you've successfully completed pre-licensing, contact your Department of Insurance and obtain an application package. Before completing the application, you must be fingerprinted at your local police station and purchase a surety bond from $25,000 to $50,000 (see Resources below). You must have an acceptable criminal background and consumer credit history, prove you are a legal resident of the United States and at be least 18 years old. Submit your application package along with the required testing fee. Most exam fees are $70 to $100 and are typically non-refundable.
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Complete the state test. After your application is reviewed, you will be cleared to complete the state examination. Contact your Secretary of State's office to reserve an exam date. A representative will provide you with a confirmation number and a list of approved testing centers. At the testing center, produce your confirmation number, two forms of identification---one containing a photo and the other verifying your signature. These requirements may differ, depending the laws in your states.
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Open a Build Up Fund Account (BUF), which is an account held in escrow by your surety company. Funds are used to cover lawsuits against you if you commit fraud or do not operate according the regulations of the industry. Money paid in to your BUF may also be withdrawn and used for your personal use after a seasoning period, depending on the terms of the account and state guidelines.
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Raise capital. The best way to secure working capital as a bail bondsman is to obtain a business credit line. This will allow you to easily access funds to bail out your clients. To apply for a credit line, contact a commercial banker and show him your business plan and company financials. If you fail to qualify, solicit investors.
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Set your fees. Most bail bondsmen charge a percentage of total bond amounts for their services. Ten percent is the industry standard. Require this to be paid in cash or certified check.
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Find a location. Bail bond offices must be visible and easily accessible. Some areas may have laws against where such businesses may operate, however, areas of high traffic near shopping centers, courthouses and retail complexes are ideal. Contact a real estate agent for help.
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Consider working for someone else at first. In order to run or own a successful bonding business, you must have experience screening clients, writing bonds and chasing bond jumpers. It is recommended to get at least two to five years experience working for a successful company before opening your shop. This will give you inside information from seasoned bondsmen and learn how criminal courts and law enforcement agencies work on a daily basis.
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Tips & Warnings
Write a business plan, especially if you need capital. Incorporate. Some states require bonding companies to be officially incorporated (see Resources below). Screen your clients thoroughly. Bond jumpers can be extremely costly to your operation. Promote your business well. Print advertising in phone books, newspapers and trade magazines is effective. A toll-free telephone number is also a good idea. Get to know defense attorneys. Consider offering online bonds. A website is a great way to serve clients from states that do not allow commercial bonding. Contact the Secretary of State for each state in which you wish to operate. Carry the proper amount of Errors & Omissions insurance (see Resources below).
Always pay license reinstatement fees on time. The bonding industry is highly regulated. Operating without a valid license could result in the loss of BUF account funds, license suspension and criminal charges. Refrain from breaking the law. Criminal convictions of any kind could result in suspension or revocation of your license. Network with bounty hunters and get to know them. They are extremely useful in capturing bail jumpers.
