FAQs

Correct Our Understanding

Please allow us to explain our understanding of the bail system and please correct us if we are wrong on anything. We do believe that small loans can help bail bond companies.

Hypothetical scenario:

Someone is in jail and calls their parents, friends, or other family and asks them to bail them out. They either refer someone out of the jail phone book or the friend or relative finds a bail company on their own. They come to the bail bond company and apply for a 50k bail bond.

Normally people are requested to put up 10% of the total bail in cash and the bail bond company covers the rest. In many cases the bail bond company requires collateral or something else to secure the bond. In many cases today people can not put up the whole 10% in cash and therefore bail bond companies also become lenders. They have to risk that the people will not complete the payment program.

Is this a realistic bail bond situation?

In this case would the person have to put up $5,000 in cash? Is the 10% cash up front rule a reality in the bail industry? Would bail bond companies benefit from sharing some of the financing risk with other unsecured lenders. There are hundreds of lenders in our system waiting to share some of the risk in order to benefit from the profit from making a large amount of short term loans.

Who Gets The Cash?

The money these lenders give to the borrowers actually goes to make part of the payment for the bail. The cash goes to the bail bond company after the lender direct deposits the money to the borrowers account.

Because the approval is immediate, the bail bond company knows that $xx amount of money will be deposited into the applicants account in a few hours or at least by the next business day. If the bail bond company knows this information, taking a post dated check would be less risky.

Will indigents or their families qualify?

As far as concerns the question that if the applicant doesn’t have cash up front they are not likely going to be approved for a loan. We have statistical data that shows that these types of loans have about a 12%-25% approval rating regardless of the demographic of the applicants.

As a matter of fact, because there are no credit score checks, approval ratings are much higher for applicants that don’t have a long history of applying for online loans already. If the applicant is of poor lending status then they are offered less than $1,500 for the first loan and given the opportunity to raise their loan amounts upon successful repayment.

How Many People Get Approved?

The industry knows already that there is an 18%-22% default rate for these high risk loans. Their business model already takes that into consideration.

What Commissions Can Be Earned?

Besides all that, bail bond companies and others who refer people to apply these loans get an average of $30-$35 per qualified application. That means that your commissions are secured even for applicants who meet the underwriting criteria but don’t actually get a loan.

What If The Loan Doesn’t Get Funded?

Either the applicant backs out because they don’t like the terms or interest rates or the lender changes their mind because further investigation reveals that they they do not meet the secondary underwriting criteria. In either situation your and our commissions are secured.

How Are Fraudulent Referrals Prevented?

Our system can detect fraudulent applicants or a pattern of refusal to accept the loans from a particular referral source, so that type of fraud is not a concern for us.

Have Any Further Constructive Criticism?

Any further commentary or discussion on this is greatly appreciated. You are the expert in your industry and we highly value your ideas and feedback. Please set us straight on anything we are off about. You are doing us a great favor when you do so.

Thanks!