Bail Bond Confessions Blog

Balancing Act

July 8, 2009
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Today, I formed my LLC and I ordered a regular land-based telephone line installation.  Though I’ve been cell-only for over 6 years, I need the ability to accept collect calls and send faxes, so it was the only reasonable solution.

Next up, I need to decide if it is worthwhile to take 1/2 of my capital and devote it to the alternative form of being a licensed bondsman.  You see, in my state, you are allowed to do it via Surety (most common) or this other method where you post collateral (cash or real estate) with the court.  The court lets you leverage the value of your collateral at a 4x multiplier and that becomes your bond writing limit.  There are a few more restrictions, but if I can swing the risk of tying up the capital as collateral, it is probably well worth it to license both ways.  I could use this other method for the small stuff like municipal bonds which tend to resolve themselves quickly and save the big guns (surety) for criminal cases that take years.  If I do that, I would be retaining 100% of the fee on the small stuff, and believe me it adds up.

On the flip side, I could sign up as a sub-Agent under another established bondsman and use his collateral.  I’d have to pay him 30% of the fee (even more than I pay the Surety!), but I would have direct access to the guy and all of his knowledge and experience.  Decisions decisions.

-bbc

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