A Close Look at The Bail Bonds Business Model


If you look at the bail bonds requirements, you will see interesting dynamics. It is one thing to get the court to sign that a person facing criminal charges should be set free if he or she satisfies a bail bond and another thing to satisfy it. As a result of this difficulty, the bail bond business came into practice. Just like every other business, it emerged out of demand, which is the springboard of all businesses.

In El Paso for instance, you can only practice as a bail bonds El Paso TX – bail bondsman if you have attained the age of 18; served under a bail guarantor for a minimum of one year; be a state resident; and of course, a U.S. citizen.

Picture that says 3 things they don't tell you as a bail bondsmanWhat a bail bondsman primarily does is to stand as a surety for an alleged criminal who has been granted bail. The bail bondsman satisfies every capital requirement that will keep the alleged criminal from jail and agrees to be held liable if the alleged criminal fails to show up in court on a court date.

The bail bond business has a model which it follows. Upon proper examination, you can liken the bail bonds business model to that of a money lender. Both of them take up a risk with the hope of making money if everything goes according to plan.

The first thing a bail bondsman will require from the alleged criminal’s party is a minimum of 10 percent of the bail bonds sum. This is the money to be made by the bail bondsman. This does not remove the risk of the alleged criminal failing to report at court on court dates. This is what makes it a risky business.

If the alleged criminal absconds, the bail bondsman will have to pay the court the full sum of the bail bond. Depending on the amount of money involved, it may bankrupt the company of the bail bondsman.

As a check against such occurrence, the bail bondsman will ask for a contract to be signed between the bail bondsman and the representative of the alleged criminal. The contract agreement will typically require that a collateral of a house or other valuable property be provided. This is to reduce the risk of the alleged criminal running away after being freed.

There are four kinds of bonds that a judge can grant to an alleged criminal: Self-recognition bond; Cash bond; Surety bond; and, property bond.

The bail bond business does not involve self-recognition since the court releases the accused in the knowledge that the defendant will not run away. It is the other kinds of bonds that require the services of a bail bondsman because they have to put up something before the court grants the alleged criminal a release.

If the alleged criminal runs away when released, the bail bondsman will pay the court the full bail bond sum. After that, the bail bondsman goes after the runaway person who is now declared as a fugitive by the court.

After searching for a reasonable period without recording any form of success, the bail bondsman will go after the fugitive’s asset or that of the person who represented the alleged criminal.