Bond To Secure A License As A Sales Finance Company (Motor Vehicle Sales)
This bond is required for businesses in Pennsylvania that want to provide financing for people buying motor vehicles. If you run a company that offers payment plans or loans to car buyers, you need this $10,000 bond to get your license from the Commonwealth of Pennsylvania. The bond protects consumers by ensuring your…
Overview
What it is.
This bond is required for businesses in Pennsylvania that want to provide financing for people buying motor vehicles. If you run a company that offers payment plans or loans to car buyers, you need this $10,000 bond to get your license from the Commonwealth of Pennsylvania. The bond protects consumers by ensuring your…
Who usually needs it
Motor vehicle sales finance companies in Pennsylvania—businesses that finance or solicit financing for installment sales contracts of motor vehicles, acquire such contracts, or lend money secured by them—must obtain this $10,000 surety bond as part of their licensing requirements under the Motor Vehicle Sales Finance Act and the Consumer Credit Code.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StatePABond amount$10,000ObligeeCommonwealth of PennsylvaniaBond classLicense BondCategoryOtherBondBond To Secure A License As A Sales Finance Company (Motor Vehicle Sales)Plain descriptionThis bond is required for businesses in Pennsylvania that want to provide financing for people buying motor vehicles. If you run a company that offers payment plans or loans to car buyers, you need this $10,000 bond to …Who needs this bondMotor vehicle sales finance companies in Pennsylvania—businesses that finance or solicit financing for installment sales contracts of motor vehicles, acquire such contracts, or lend money secured by them—must obtain thi…
