What is a Bail Bondsman?
A bail bondsman arranges bail for a suspect in a criminal case. They put up the necessary money or assets to get the person out of jail. Part of the job is also preparing for an arraignment, which will normally be a certain percentage of the bail money. Bail bondsmen usually charge a pretty high interest rate in return for this short notice loan. Most of the time, the interest rate is in excess of 10%. This is why it can be a very lucrative career.
However, on the flip side, it can also be a very risky career. Because of the character of some of the clients involved, there is a chance that they may get out of jail and skip town, and leave the bondsman to foot the bill. If someone leaves town just after being bailed them out, it can really hurt the bottom line of a bondsman’s business. To ensure that this scenario does not happen, and that they receive the money owed to them, many bondsmen have a bounty hunter on staff or perform the job themselves.
Steps to Becoming a Bail Bondsman
It is important to do some research for the specific geographical area in which you would like to work. The biggest thing you'll want to find out is if bailing is even allowed in your area. Some areas prohibit this practice, so that should be the first thing you look at before you get started. Otherwise, your dream of being a bail bondsman might be over before it starts. If it is allowed, look into the supply and demand for the area. Find out how many other bail bondsmen are in the area. This will give you a good idea of what competition you're up against.
After you look at the competition, find out how many people are utilizing this service and are being bailed out of jail on average. If there aren't many people using this service in your area, you may want to reconsider the area. However, if there are more people trying to get bailed out than the available bondsmen can handle, it is a good time to get into the industry. These underserved markets are ideal for those just starting out.
The next step is to find out the legal qualifications you'll have to fill. You will have to be at least 18 years old to get started. You'll also need to become licensed or certified by the local government. Whether you have to take a test or training depends on your area, but you'll have to have some sort of formal certification. Most states’ licensing authorities are through the Department of Insurance.
After all of these initial steps, you'll want to get a surety insurance policy. This is a policy that will prevent you from losing your shirt in a deal. The insurance company will reimburse you if someone skips town.
With these tips in mind, you should be well on your way to starting a successful bail bonds business.
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