Tennessee Flexible Credit Act Bond Guide
In Tennessee, flexible credit lenders must file a surety bond for state licensing.
Bond Overview
- Purpose: To ensure lenders uphold state regulations and client contracts
- Who Needs It: All flex loan lenders in Tennessee
- Regulating Body: The Tennessee Department of Financial Institutions
- Required Coverage: $25,000 per location, up to $200,000
- Premium Rate: Credit-based, starting at 1%
Keep scrolling to learn more about the bonding process.
What Is a Tennessee Flexible Credit Act Bond?
A Tennessee Flexible Credit Act bond, also known as a flex loan bond, protects clients from fraudulent or negligent lending practices.
The Tennessee Department of Financial Institutions (TDFI) requires $25,000 bond coverage per location, up to $200,000.
How Much Do Flex Loan Bonds Cost in Tennessee?
Tennessee flex loan bond premiums are credit-based and typically cost 1–3% of the bond amount. Qualified applicants often pay just $250 for $25,000 coverage.
Select your bond amount below for a free, personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Tennessee Flexible Credit Act Bond Work?
A Tennessee Flexible Credit Act bond is a legal contract between three parties:
- Principal: The flex loan lender purchasing the bond
- Obligee: The Tennessee Department of Financial Institutions requiring the bond
- Surety: The provider issuing the bond
As the principal, you promise to uphold the provisions of the Tennessee Flexible Credit Act.
If you break the bond terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Flexible Credit Act Bond?
In Tennessee, all flexible loan lenders need a surety bond for state licensing. Flex loans are a form of open-end credit used for noncommercial personal purposes.
Alternatively, you can submit a letter of credit. However, a surety bond is typically the most affordable option, requiring only a small upfront premium and no collateral.
How Do I Get a Flexible Credit Lender Bond in Tennessee?
SuretyBonds.com provides the fastest and easiest way to get a flexible credit lender bond. Just follow these simple steps:
- Apply Online: Fill out the quote request form on this page
- Pay Invoice: Complete your purchase online or over the phone
We will upload the bond documentation to the NMLS on your behalf and email you a copy for your records.
How Fast Can I Get My Bond?
SuretyBonds.com issues flexible credit lender bonds faster than any other provider. We process most bond applications same-day.
Apply now to start the bonding process.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit will likely increase your premium rate.
Apply for a free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My Flexible Credit License Bond?
Tennessee flexible credit license bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
To renew, just pay the premium — we’ll do the rest!
Note: You must maintain an active bond policy for at least 3 years following your license's expiration, revocation or surrender.
How to Become a Flexible Credit Lender in Tennessee
The Tennessee Department of Financial Institutions oversees the licensing of all flex loan lenders.
Before applying, register each branch location with the Secretary of State. You must have at least $50,000 in tangible net worth for each location.
Complete a separate NMLS application for each branch. Upload the following supporting documents:
- Audited financial statement
- Individual Form (MU2) for the branch manager
- Surety bond form
- Payment for the $1,150 licensing fee and $25 processing fee
Once approved, you can print your license directly from NMLS. You must renew your license annually by December 31.
