A Pawnbroker's Bond is a $20,000 financial guarantee required for anyone who wants to operate a pawn shop in California. This bond protects customers and the state if the pawnbroker breaks laws or regulations, such as failing to return pledged items or engaging in fraudulent practices. If violations occur, affected pa…
Overview
What it is.
A Pawnbroker's Bond is a $20,000 financial guarantee required for anyone who wants to operate a pawn shop in California. This bond protects customers and the state if the pawnbroker breaks laws or regulations, such as failing to return pledged items or engaging in fraudulent practices. If violations occur, affected pa…
Who usually needs it
Any person or entity applying for or renewing a pawnbroker's license in the State of California.
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.
StateCABond amount$20,000Term length2 YearsObligeeLocal Licensing Authority (Chief of Police, Sheriff, or Police Commission) and the California Department of JusticeRenewalThe bond must be filed with the local licensing authority every two years as a condition precedent to the renewal of the pawnbroker's license.Bond classLicense BondCategoryFinancial ServicesBondPawnbroker's BondStatutory referenceCalifornia Financial Code Sections 21303 and 21304JurisdictionState
