Bail bond companies help individuals secure their release from jail while awaiting trial by posting a bond on their behalf. These companies make money from bail bonds by charging a service fee. In most states, this fee is typically 10% of the total bail amount.
To illustrate, if the bail amount is set at $10,000, the bond company will charge a non-refundable fee of $1,000 for posting the bail on the defendant’s behalf. If the defendant fulfills all obligations and attends all court hearings, the bail bond company will receive the full $10,000 back from the court and keep the $1,000 fee as their profit.
Otherwise, the bail bond company will be responsible for paying the court. This is why bail bonds often involve collaterals, like properties, to ensure the companies are not left with a financial loss if the defendant doesn’t appear in court.
In addition to the service fee, bail bond companies may also offer assistance with locating a criminal defense attorney or providing transportation to and from court hearings. These added services may cost extra to the client and serve as another income stream for the bail bond company.
While the bail bond industry can be lucrative, note that bail bond companies are heavily regulated by state laws and regulations. They must comply with strict guidelines to protect both their clients and the public. This way, they can continue to operate in providing bail assistance.