Everything You Need to Start a Bond Agency

So you want to start a bond agency, but you don’t know where to start. Which is normal, since to many people it feels like an industry secret. But it’s actually not as difficult as you think it is. And you may want to pay close attention to ensure that your business runs smoothly and continues to thrive.

What Do You Need to Start?

·       Location

The first and foremost, think about the best location for your office. You can see numerous agencies are near the courthouse or a police building. Finding a location can be difficult, but when you are set, you can start making your name as an agent.

When you choose a location, you must think ahead and see where your business is in at least five to ten years. Think thoroughly about how the location can help your business.

·       Skills

The primary skill you need to have is understanding law. You can’t come into working in a legal world without any knowledge of the law. At the very least, you must understand the court system to help your client.

In addition to the law knowledge, you also must have interpersonal skills to help you garner more clients. For example, you must be compassionate to listen to their issues but also firm enough during the negotiation to get the best deal for both of you.

·       Licenses

Among numerous things you have on your list, a license must be one of the top priorities. If you don’t have a license as a bond agent, you cannot offer bond services. Everything you do will be rendered illegal, and you are risking yourself to be a defendant instead of representing one.

Your license is valid for 24 months, and you must renew it before it expires. However, each state has different rules on the time limit and when they will take applications for license renewals.

·       Manpower

Let’s be real here; you can’t run a bond office on your own. You must hire several people to help you with the administration. Another idea is to start a bond office by employing another bond agent. At the very least, you can share the responsibilities and work together to build the office’s reputation.

·       Strong financial capability

Don’t forget that you have to be financially capable to post bails for your clients. It means your cash will be tied for a set amount of time, or until the trial is complete. In addition to paying your employees, you also must pay for operational bills and the bails.

You also can’t rely on a bank loan because most banks consider the bond agent business as high-risk. Therefore, you must show strong finances to gain the license and have clients.

Starting a new business is never easy, especially when it’s a high-risk one like a bond office. But as long as you cover all of the basics, you will do well on running and managing the clients. And as your experience grows, so does your business.