Payday Loan Bonds

What Is a Payday Loan Bond?

Payday loan bonds are surety bonds that protect borrowers from unlawful behavior committed by payday loan brokers and other short-term lending companies. These bonds are also referred to as “small loan license surety bonds” or “deferred presentment provider surety bonds.”

SuretyBonds.com is the nation’s top surety provider. We offer the best service, fastest delivery and most affordable prices for payday loan bonds. 

Payday Loan Definition

A payday loan is a small, short-term loan used to manage a borrower’s breaks in cash flow between paydays. The loans are generally issued without credit checks and are not against predetermined lines of credit.

State-Specific Bond Costs

The cost and requirements of payday loan bonds vary considerably because each state sets unique license and bonding regulations. For example, payday loan providers in Illinois must purchase a bond for $50,000 for each branch location. On the other hand, financial lenders and brokers in California must buy a $25,000 bond. 

Select your state below to learn more about bond pricing in your area:

Why Do I Need a Payday Loan Bond?

In several states, business owners are required to purchase a payday loan bond before they can receive their business license. If an employee doesn’t perform the agreed-upon services or fails to carry out a particular agreement, a claim can be filed against the bond.

Plus, being bonded instills confidence in customers that your short-term loan company will operate legally and ethically.

Apply for Your Payday Loan Broker Bond Online

To apply for your small loan license bond, fill out our online request form or give us a call. You’ll get a free, no-obligation price quote within one business day or less.