A Collection Agency Bond is required for corporations and LLCs that collect debts owed to other businesses in Minnesota. This bond protects consumers from unfair or illegal collection practices. If your company violates state collection laws or harms consumers while trying to collect debts, they can file a claim again…
Overview
What it is.
A Collection Agency Bond is required for corporations and LLCs that collect debts owed to other businesses in Minnesota. This bond protects consumers from unfair or illegal collection practices. If your company violates state collection laws or harms consumers while trying to collect debts, they can file a claim again…
Who usually needs it
Corporations and LLCs operating as collection agencies in Minnesota that are licensed to act as third-party debt collectors—businesses that recover unpaid accounts, bills, or debts on behalf of creditors, including debt buyers—must obtain this bond to maintain their collection agency license. The bond is required for each branch location and main office wit…
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.
StateMNBond amountVaries by license type or projectObligeeDepartment of Commerce of the State of MinnesotaBond classLicense BondCategoryOtherBondCollection Agency Bond (for Corporation/LLC only)Plain descriptionA Collection Agency Bond is required for corporations and LLCs that collect debts owed to other businesses in Minnesota. This bond protects consumers from unfair or illegal collection practices. If your company violates…Who needs this bondCorporations and LLCs operating as collection agencies in Minnesota that are licensed to act as third-party debt collectors—businesses that recover unpaid accounts, bills, or debts on behalf of creditors, including debt…
