How Do Felony Bail Bond Businesses Operate?
If you are ever charged with a felony, then it is likely that a bail sum will be demanded for your temporary release until a court date is set. Felony charge bail bonds can be high, meaning you may need to turn to a third party to help you pay the bail sum demanded if you don't have sufficient savings. If so, a felony bail bonds business will provide the authorities with the required amount to set you free. How do such businesses operate? Read on to find out more.
The Felony Bail Bond Business Model
Businesses that provide felony bail bonds are set up to provide financial assistance and are, therefore, a specialist form of credit provider. These businesses typically require the defendant to pay a percentage of the total bail amount as a fee. In return, the bail bond business guarantees the entire bail amount to the court. They do so on a promise that they'll guarantee the defendant's appearance at trial when it is set. Consequently, a bond business would risk losing the entire amount they have guaranteed if the defendant were to abscond.
The Role of Bail Bond Agents
Bail bond agents, often referred to as bondsmen, play a pivotal role in felony bail bonds. Basically, they operate as intermediaries between the defendant and the court. If the agent determines that the defendant is a good risk, based on an assessment of their criminal history, employment status, and community ties, they will agree to post the demanded bail sum. The agent then drafts a contract detailing the terms and conditions of the bail agreement. Both parties will sign this before any money changes hands. Such contracts are usually standardized but bespoke ones may be drawn up in particularly tricky court cases.
Financial Aspects and Collateral
The profitability of any felony bail bond business will necessarily be based on the fees they collect from clients. However, operating a business that specializes in felony bail bonds comes with inherent financial risks. For example, the risk associated with potentially losing the full bail amount if a client skips trial means that such businesses often require some form of collateral before they will put up the bail sum. Collateral typically takes the form of property deeds, vehicle titles, or other assets. These may be taken possession of legally if the suspect decides to attempt to avoid justice by skipping their bail terms.
Contact a professional to learn more about felony bail bonds.