A Non-Depository Sales Finance Company bond is required for businesses in Michigan that finance consumer purchases but don't accept deposits like banks do. This includes companies that provide auto loans, furniture financing, or similar installment payment plans. The State of Michigan requires this bond as a financial…
Overview
What it is.
A Non-Depository Sales Finance Company bond is required for businesses in Michigan that finance consumer purchases but don't accept deposits like banks do. This includes companies that provide auto loans, furniture financing, or similar installment payment plans. The State of Michigan requires this bond as a financial…
Who usually needs it
Non-depository sales finance companies that provide consumer sales financing without accepting deposits (particularly those financing motor vehicle sales) and out-of-state depository institutions operating in Michigan need this bond. The bond is required as a licensure condition to ensure compliance with the Motor Vehicle Sales Finance Act 27 of 1950 and re…
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.
StateMIBond amountVaries by license type or projectObligeeState of MichiganBond classLicense BondCategoryOtherBondNon-Depository Sales Finance CompanyPlain descriptionA Non-Depository Sales Finance Company bond is required for businesses in Michigan that finance consumer purchases but don't accept deposits like banks do. This includes companies that provide auto loans, furniture fina…Who needs this bondNon-depository sales finance companies that provide consumer sales financing without accepting deposits (particularly those financing motor vehicle sales) and out-of-state depository institutions operating in Michigan n…
