Is A Bail Bond A Loan?

Question: So let me see if I understand how bail works: as a bail bonds company what you do is you provide the cash and they give money toward that bail which is sort of like what interest on a loan?

Answer: No, it’s not a loan. It is actually a bond. It is a piece of paper and the amount paid to the bondsman is a fee. We collect the bail fee and that’s how we make money. However, we are assuming a risk by guaranteeing to the court that both we as the bail agent and the indemnitor (the person who is taking responsibility and signing the contract) will make sure that the defendant gets back to court when they are supposed to.

Question: Okay I see. I keep wanting to liken this to other things but I shouldn’t do that because when I say interest on a loan you make it clear it is not that. Really a bail bond is a guarantee.

Answer: Yes. It is called a “surety bond” more specifically and a surety bond is the same, if you want to liken it to something, as insuring performance. When you go to build a house people will have a bond with the construction company and that is basically saying that they will do what they’ve said they are going to do. With a bail bond, we are guaranteeing appearance in court.

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