Arizona Collection Agency Bond

If you want to launch a third party debt collection agency in Arizona, you have to obtain a license with the Department of Financial Institutions. The bond guarantees your compliance with relevant Arizona Revised Statutes. You have to supply the bond in the state-required bond form. This is an indispensable criteria for receiving your Arizona collection agency license.

Your bond amount is determined by the Department of Financial Institutions on the basis of your gross yearly income in the previous year. It can range from $10,000 to $35,000.

The actual bond cost you have to pay, however, is different. It’s called the bond premium. It is typically between 1%-5% of the bond amount if your finances are in good shape. For a $15,000 bond, this can mean a price of $150-$750.

Whatever the bond amount you have to post, the bond premium is formulated after examining your personal and business finances. Your credit score is especially important. Your surety will also consider your business financials, as well as any assets and liquidity that you can showcase. On the basis of these factors, it can assess the risk involved in bonding you. Low-risk applicants get cheaper bond premiums.

Our surety bond cost page is a great resource for further information on the bond price formation.

Lance Surety Bonds runs its Bad Credit Surety Bonds program for applicants with problematic finances. If you have a low credit score, tax liens, bankruptcies, or civil judgements, this option is for you.

The bonding rates are in the range of 5% and 10%. They are higher because the risk of bonding you is increased. However, you can still get a great bond premium with us. We work with a number of A-rated, T-listed surety companies, which allows us to shop around for the best bond rate for your circumstances.

Are you ready to start your bonding process? Just apply online for a free, no-obligations Arizona collection agency bond quote. We can also deliver you an exact bond price once you fill in your complete application form and send us your paperwork.

For more information on how bonding works, make sure to check out our How to Get Bonded page.

Lance Surety Bonds’ specialists are here to help. If you need to speak to us, just call us at (877) 514-5146, and we’ll assist you.

The purpose of your bond is to safeguard the interests of the state and of your customers. If you transgress from your obligations under the Arizona Revised Statutes, you can get a bond claim. Some common reasons for claims are failing to forward collected payments, or engaging in fraudulent activities.

If the claim against you is proven, you are liable to compensate the affected party. The reimbursement can be up to the penal sum of your bond. Your surety covers these costs initially, but you have to repay it afterwards. This means bond claims are to be avoided as much as possible.