A company can make money from immediate bail bonds mainly through the premiums they charge to secure a defendant’s freedom until their court date. This video explains how a company can make money from bail bonds, and how they can protect themselves from losses in case a defendant does not show up for their court date. When someone is arrested and charged with a crime, they wait in jail for a bail hearing for 24 to 48 hours.
At the hearing, the judge may set a bail amount, for which the median amount for felonies is about $10,000.
Many cannot afford their bail amounts, and this is where an immediate bail bonds company can make money. They guarantee the bail payment to the court on behalf of the defendant, typically for a 10% to 15% fee on the bail amount. Cash bail is refundable whether found guilty or innocent. However, if the defendant does not show up to court, the bail bondsman has to pay the court. To avoid taking losses in such an event, a bail bonds company will legally secure collateral from the defendant to cover the bail amount.