California Pawnshop Bond Apply now

What is a California Pawnshop Bond?

A California pawnshop bond is required of all pawnbrokers operating in the state by CA Financial Code 21303.  The surety bond is meant to protect the persons who pawn their items at a pawnshop from harm should they comply with their pawn contract.  Ultimately the California pawnshop bond is meant to provide reimbursement for items pawned if they no longer are available when the person who pawned the item returns to collect it after satisfying their contract.

How do I apply for a California Pawnshop Bond?

  1. Complete our online California Pawnshop Bond application, or
  2. Download and complete our printable California Pawnshop Bond application, and
  3. Receive your surety bond quote in minutes!

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What California Pawnshop Bond amount do I need?

There are two different bond amounts which you may need to open a pawnbroker business.  At the very least, you will need a $20,000 bond if you can show $100,000 in liquid assets on a financial statement which has been reviewed by a CPA.  If not, you are required to post a $100,000 surety bond in lieu of the original $20,000 requirement.

Who needs a California Pawnshop Bond?

A California pawnbroker bond is required by all persons engaged in the business of receiving goods, even cars, in pledge as security for a loan.

How much does a California Pawnshop Bond cost?

The California pawnshop bond cost varies depending on the owner’s personal credit score.  The better your credit score the lower the surety bond cost.  Individuals with an excellent credit score can expect to pay $200-$400 annually for the $20,000 bond and $1,000-$2,000 annually for the $100,000 bond.  However, applicants with bad credit and little to no experience can expect to pay a higher annual premium.

Can I get a California pawnshop license if I have a criminal record?

Yes, you may received a pawnbroker license if you have a criminal record.  The exceptions are if you have been convicted of dealing or other offenses involving stolen property.  The application will be sent to the Department of Justice for verification and, if no comment is made by the DOJ, you may be issued a license.

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