<p>If the accused does not flee, they also get the bail back at the end of the trial process.</p>

CC BY-SA 4.0
2023-10-09T06:07:23.390Z
2023-10-09T06:07:23.390Z
Giskard
<p>Giskard's answer is of course correct, but just to provide little bit more detail.</p>
<p>Bondsman's operate in similar fashion like short-term loan provides (e.g. payday loans etc). The fee can be viewed as interest people have to pay to borrow the amount of money for their bond. When people show up in court the bondsman will receive back the money (i.e. loan is repaid).</p>
<p>They probably use different terminology (e.g. fee) because people dislike the common terminology (e.g. interest rate), but it is similar to Islamic banking where there are no interests but you still end up paying the same for loan in fees or earn interest on your investment through ' profit sharing'.</p>
<p>So the bondsman earns profit from an intermediation margin. They have to borrow or somehow else come up with the money for the bond amount, then they lend the money and get back some fixed interest ('fee' ). As long as the fee is larger than total costs including cost when people 'default' (do not show in the court) the bondsman earns some profit from the operation.</p>

CC BY-SA 4.0
2023-10-09T09:01:53.070Z
2023-10-09T09:21:26.633Z
2023-10-09T09:21:26.633Z
1muflon1
<p>I hope I'm asking this on the right site and used the right tags.</p>
<p>When looking into the concept of bail bonds on Google, I was told bail bondsmen are paid a fee to post a defendant's bail- but also that said fee is typically 10% of the bail itself.</p>
<p>At first glance this system looks like the bondsman pays more than he gets, but that doesn't seem an effective business model- what am I missing?</p>

<bonds><debt>
How does a bail bondsman make a profit?
Nu'Daq
# How does a bail bondsman make a profit?

(Asked by: username_0 on 2023-10-08)

I hope I'm asking this on the right site and used the right tags.

When looking into the concept of bail bonds on Google, I was told bail bondsmen are paid a fee to post a defendant's bail- but also that said fee is typically 10% of the bail itself.

At first glance this system looks like the bondsman pays more than he gets, but that doesn't seem an effective business model- what am I missing?

**Tags:** bonds, debt


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## 2 answers

### Answer by username_1 on 2023-10-09. Score: 2

If the accused does not flee, they also get the bail back at the end of the trial process.


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### Answer by username_2 on 2023-10-09. Score: 1

username_1's answer is of course correct, but just to provide little bit more detail.

Bondsman's operate in similar fashion like short-term loan provides (e.g. payday loans etc). The fee can be viewed as interest people have to pay to borrow the amount of money for their bond. When people show up in court the bondsman will receive back the money (i.e. loan is repaid).

They probably use different terminology (e.g. fee) because people dislike the common terminology (e.g. interest rate), but it is similar to Islamic banking where there are no interests but you still end up paying the same for loan in fees or earn interest on your investment through ' profit sharing'.

So the bondsman earns profit from an intermediation margin. They have to borrow or somehow else come up with the money for the bond amount, then they lend the money and get back some fixed interest ('fee' ). As long as the fee is larger than total costs including cost when people 'default' (do not show in the court) the bondsman earns some profit from the operation.


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