Michigan Junk Collector Bonds
Fast Approval at the Lowest Rates
If you want to operate as a Junk Collector in Michigan—specifically within Detroit—you must obtain a business license. As part of this process, you are required to post a bond. Propeller Bonds makes it fast, simple, and affordable.
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Instant approvals
Thousands of bonds issued
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Ensures compliance with local contractor regulations for construction businesses.
$100/year
Coverage Up to $2000
Term 1 Year
Approval Time 24-48 hours
Bond Overview, Eligibility & Costs
Explore what the bond covers, who is required to carry it, and how much you can expect to pay.
What Is the Bond?
In Michigan, junk collection and scrap handling are regulated at the local level. Within Detroit, licensing is handled by the City of Detroit. The City requires a $2,000 surety bond to ensure collectors operate legally and follow all scrap handling ordinances.
The bond creates a legal guarantee between three parties:
- Principal – You, the junk collector
- Obligee – Michigan – City of Detroit – Consumer Affairs Dept – Business License Center
- Surety – Propeller Bonds
Who Needs It?
This applies to individuals and businesses collecting, transporting, or selling scrap and discarded materials in Detroit, Michigan.
This typically includes:
- Mobile Junk Collectors using trucks or trailers to gather scrap
- Scrap Metal Collectors operating within city limits
- Any individual applying for a Detroit Junk Collector License
Michigan Junk Collector Bond Requirements
Michigan Junk Collector Bond Requirements
Junk collection in Detroit is regulated to prevent illegal scrap transactions and ensure public safety. Bonding ensures that authorities like the Consumer Affairs Dept are protected if a collector fails to follow city ordinances.
Michigan Junk Collector Bond Basics:
- Apply for a license through the Detroit Consumer Affairs Department
- Pass a mandatory vehicle inspection for safety and compliance
- Post a Junk Collector bond to maintain active status with the city
- Comply with all local laws regarding scrap handling and material resale
- Helps prevent the sale of stolen materials and protects the city from fraud
How Much Does a Michigan Junk Collector Bond Cost?
The cost of a Michigan Junk Collector Bond for Detroit is typically a flat annual premium for most qualified applicants.
Here’s a general breakdown:
- Bond amount: $2,000 (City of Detroit requirement)
- Premium: Typically $100 annually
- Term: Usually issued for one year and renewable annually
Frequently Asked Questions
Not statewide, but cities like Detroit require a specific business license to legally collect or transport scrap materials.
The Detroit Consumer Affairs Department, through the Business License Center, handles all licensing and regulatory oversight.
In Detroit, yes. A $2,000 surety bond is a mandatory requirement for obtaining or renewing a Junk Collector license.
It ensures compliance with local ordinances, prevents illegal scrap transactions, and protects the city from the unlawful trade of stolen materials.
No. Operating without a valid Detroit license can lead to vehicle impoundment, fines, or other legal enforcement actions.
Collectors are mobile units that gather and transport materials, whereas junk dealers usually operate from a fixed, permanent scrap yard location.
Yes. Most Detroit applicants must pass a vehicle safety and compliance inspection before their license is approved.
Yes. Because the Detroit junk collector bond amount is small ($2,000), most applicants qualify instantly at a flat rate regardless of credit.
Most bonds are issued the same day or within 24 hours of your online application.
No. Insurance protects your business assets; the bond is a financial guarantee required by the City of Detroit to protect the public and ensure legal compliance.
Yes. While this bond is specifically for Detroit, other Michigan municipalities may have different bond amounts or licensing rules.
If a valid claim is approved, the surety may pay damages up to the bond amount, and you must reimburse the surety for every dollar paid out.
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Junk Collector Bond?
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Testimonials
As a business owner who needed help, the staff at Propeller Bonds, made it easy to get the bond we needed. When looking for a bond company, we didn't know who to trust. Not only is Propeller Bonds trustworthy, but fast and efficient. They got our business back on track in no time.
Thank you! Love doing business with you guys. Awesome response, quick response, answer all my questions. Just a great place to be! Don’t have many mistakes, but when I do you guys are always on it! Thank you so very much!
Simple, easy and to the point.
All bonds are fast issue!
Spectacular company, easy-to-use products, available in all 50 states and have been a great solution for every single bond I've thrown their way!
Propeller Bonds is super easy to work with and a true no-brainer. Use them!
Great product maximizing effectiveness through excellent technology.
Propeller has already made an impact! When deciding what platform (surety direct or otherwise), we automatically consider Propeller now - it is top of mind!
Your approach to issuing small commercial surety bonds online and via email is excellent and has been very well received by clients. Further, it has streamlined our work in that space, freeing up capacity for our larger and complex cases.
I love the ease of the system - that I can issue bonds on behalf of the client or send them a link and have them do it. I love that you have thousands of bonds in your database. I feel comfortable talking to a client across the country because you probably have the bond form that they need.
I can say working with Propeller Bonds and their entire team has been a great experience for us and our clients. From litigation to construction and everything in between, they are easy and effective!
This is what swinging at solutions vs. swinging at nails looks like.
The Propeller quote system is so easy to use & I was able to issue one already at a much better price than the current surety I also use. This will be a great option for my Agency for bonds!
You are doing a magnificent job!
Representatives were very helpful when I needed to make changes to my certificate!
The ability to update/amend a bond without having to ask Underwriting is great! Also the ability to have a portal to see all bond purchases and their expiration dates, etc.
Responsiveness of the team when we have questions is fantastic!
Everything has been excellent! Hope you can maintain your level of service, in consideration of your impressive growth. We’re pulling for you!
Thank you. That was a piece of cake! ☺️
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