Michigan sales finance company bonds.
$200 flat.
Under the Michigan Motor Vehicle Sales Finance Act, a $20,000 surety bond accompanies the first application for a sales finance company license, executed to the State of Michigan and applicable to your principal place of business under MCL 492.105. Ours is $200 flat.
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How much does a Michigan sales finance company bond cost?
$200 at the $20,000 amount, the same for every applicant.
Three steps. One sitting.
Sales finance licensing bonds are among the simplest filings in surety. Here's the entire process:
Apply online
Business details, an effective date, and a term. That is the application. No credit check.
Pay & e-sign
This bond is checkout-priced at $200 flat, so it issues the moment you pay — your executed bond and power of attorney generate on the spot.
File with your license application
Your executed bond arrives by email, ready to file with your first sales finance company license application. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
Michigan regulates companies that purchase and finance motor vehicle installment sale contracts under the Motor Vehicle Sales Finance Act, 1950 (Ex. Sess.) PA 27. Under MCL 492.105, a bond in the penal sum of $20,000 accompanies the first application for a sales finance company license and applies to the principal place of business — additional locations each carry a $10,000 bond.
The bond is executed to the State of Michigan for the use of the state and any person — conditioned on the licensee complying with the act and the administrator’s rules, and paying any money that becomes due to the state or to any person under the act. A person with an unsatisfied judgment against the licensee can sue on the bond.
It is not insurance for you — if the surety pays a claim, you repay the surety. A new bond or renewal certificate must be filed annually at least 15 days before July 1; we track the term and send renewal notices 60 and 30 days out.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $20,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The bond runs to June 30 whatever day you buy; the premium covers the period to that date.
Renewal falls on the statutory date, June 30, in the year your term ends.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with your license application. Your executed bond arrives by email, ready to file with your first sales finance company license application. Wet-ink original mailed on request.
What sets the price
The premium is fixed at $200 at the $20,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
No credit check.
One application, issued instantly.
These are the actual issuing fields — business details, an effective date, and a term. That is the entire application.
Start the application →Common questions.
Other Michigan bonds.
The same bond in nearby states.
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Price and requirements checked on the carrier’s application, . Page updated .
Finish your sales finance license today.
$200 flat, issued the moment you pay, no credit check. Free until issued.