Raleigh Pawnbroker Bond

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Raleigh Pawnbroker Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Raleigh Pawnbroker Bond

At a Glance:

  • Lowest Cost: $100 per year or $10 per month
  • Bond Amount: $5,000
  • Who Needs it: All pawnbrokers operating in Raleigh, North Carolina
  • Purpose: To ensure the public will receive compensation for any damages if the pawnbroker violates licensing law
  • Who Requires the Bond: The City of Raleigh
Raleigh Pawnbroker Bond Form
Raleigh Pawnbroker Bond Form


Raleigh Code of Ordinances 12-2102 requires all pawnbrokers operating in the city to obtain a license before conducting business. The Raleigh City Council enacted the licensing requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, pawnbrokers must purchase and maintain a $5,000 surety bond to be eligible for licensure.

What is the Purpose of the Raleigh Pawnbroker Bond?

Raleigh requires pawnbrokers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the broker fails to comply with the regulations set forth in Raleigh Code of Ordinances 12-2103. Specifically, the bond protects the public in the event the broker commits any acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the pawnbroker breaks licensing law.

How Can an Insurance Agent Obtain a Raleigh Pawnbroker Surety Bond?

BondExchange makes obtaining a Raleigh Pawnbroker bond easy. Simply log in to your account and use our keyword search to find the “Raleigh” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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Is a Credit Check Required for the Raleigh Pawnbroker Bond?

No, a credit check is not required for the Raleigh Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers operating in the city, regardless of their credit history.

How Much Does the Raleigh Pawnbroker Bond Cost?

The Raleigh Pawnbroker bond costs just $100 per year or $10 per month.

Who is Required to Purchase the Bond?

Raleigh requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Raleigh Code of Ordinances 12-2101, a pawnbroker is a person who issues loans at interest to individuals that leave their property, as collateral, for the broker to sell or purchases goods for resale from a dealer/trader.

Raleigh Pawnbroker Bond

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How do Pawnbrokers Apply for a License in Raleigh?

Pawnbrokers in Raleigh must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the application form for details on the process.

License Period – All Raleigh Pawnbroker Licenses expire annually and must be renewed before the expiration date

Step 1 – Complete the Application

All Raleigh Pawnbroker License applications should be submitted to:

City of Raleigh
Revenue Services-03
PO Box 590, Raleigh, NC 27602

Pawnbrokers must complete the application in its entirety, and submit the following items:

    • Unaudited statement, prepared by an accountant, verifying the total net assets or capital to be used for business operations
    • Sheet containing the names and addresses of all company owners and officers

Step 2 – Pass Inspection

Pawnbrokers must have their applications approved by the city’s fire, police, and inspections departments as well as pass an inspection of their premises after submitting their license application. The city will contact the broker to schedule an inspection time.

Step 3 – Obtain Approval from the City Council

All pawnbroker license applications must be approved by the Raleigh City Council. The city council will review the broker’s application after it has received written approval from all relevant departments.

Step 4 – Pay Fees

Once their license is approved, pawnbrokers are required to pay a $275 business license tax

Step 5 – Purchase a Surety Bond

Pawnbrokers must purchase and maintain a $5,000 surety bond

How do Raleigh Pawnbrokers Renew Their Licenses?

Prior to the expiration date, pawnbrokers will receive instructions on how to renew their licenses. Brokers must also pay a $100 renewal fee by June 30 of each year. All Raleigh Pawnbroker Licenses expire annually and must be renewed before the expiration date.

What are the Insurance Requirements for the Raleigh Pawnbroker License?

Raleigh does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Pawnbrokers must purchase and maintain a $5,000 surety bond.

How Do Raleigh Pawnbrokers File Their Bonds?

Pawnbrokers should submit their completed bond forms, including the power of attorney, to:

City of Raleigh
Revenue Services-03
PO Box 590, Raleigh, NC 27602

The surety bond requires signatures from both the surety company that issues the bond and from the broker. The surety company should include the following information on the bond form:

  • Legal name and license classification of the entity/individual(s) buying the bond
  • Surety company’s name and state of incorporation
  • Entity requiring the bond
  • Date the bond goes into effect
  • Date the bond is signed

What Can Raleigh Pawnbrokers do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, pawnbrokers in Raleigh must ensure that they:

  • Do not engage in any acts of fraud
  • Do not breach contracts made with consumers

What Other Insurance Products Can Agents Offer Pawnbrokers in Raleigh?

Raleigh does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a business license. However, most reputable brokers will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Raleigh Pawnbroker Customers?

Raleigh unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the city at (919) 996-3200 to obtain this information Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

Raleigh Pawnbroker Bond