You don't know how often I'm asked by people "You're recession proof, right?" or "Business is better for you in a down economy, isn't it?". Well let me set the record straight. NO.
Simply put, when the economy is doing well the crime rate falls, but people have more ability to pay for their bail. In a down economy the crime rate goes up, but less people can afford to pay for their bail. Further, with the lagging real estate market, a bail agent's ability to secure their bail bonds with real estate is much much more difficult. Hence, more exposure to potential loss.
Lastly on a personal note, bail bondsmen typically live in the communities that they service. This means their children go to school there. Their families shop there. They attend church there. A down economy and spike in crime rates not only affect their businesses, but truly affect their personal lives as well.
Colliers International reported a 4% drop in available commercial real estate for the month of March in Silicon Valley which is the San Jose area of California. Is this a sign of growth my community? Are businesses reinvesting here. Well I sure hope so.
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