Michigan Non-Depository Sales Finance Company Bond

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A Michigan Non-Depository Sales Finance Company Bond is a type of surety bond  required by the Michigan Department of Insurance and Financial Services (DIFS) for companies licensed to finance motor vehicle sales but don’t take deposits. The bond amount is $20,000 for the Main Office and $10,000 for each additional location. the cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Michigan Non-Depository Sales Finance Company Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Michigan Non-Depository Sales Finance Company Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Who Needs This License and Surety Bond?

Here are some examples of companies in Michigan that might require a Michigan Non-Depository Sales Finance Company bond:

• Auto dealerships with in-house financing: Many car dealerships offer financing options directly to customers. If they don’t take deposits and the financing is handled in-house, they would likely need this type of bond.
• Independent finance companies: These companies specialize in providing loans for vehicles, typically for people with lower credit scores or those who might not qualify for traditional bank loans.
• Buy-here-pay-here dealerships: These dealerships sell cars and finance the purchase themselves, again without taking deposits. They would fall under the non-depository category and need to provide a bond.

Important to note: This isn’t an exhaustive list, and the specific regulations can vary depending on the company’s exact business model. If you’re unsure whether a particular company requires this bond, it’s best to consult with the Michigan Department of Insurance and Financial Services (DIFS) or an attorney specializing in business law.

Click to Access MOTOR VEHICLE SALES FINANCE ACT SALES FINANCE LICENSE APPLICATION