In what situation might a dealer find it difficult to continue business due to bond issues?

A dealer might find it difficult to continue business due to bond issues particularly when the bond is increased significantly. In the context of manufactured home dealers, bonding requirements are set to protect consumers and ensure dealers operate within legal and ethical guidelines. If a dealer faces a significant increase in the required bond amount, it may pose a financial strain. This can impact their cash flow and operating capital, which are vital for the business.

In many cases, dealers must secure a bond to obtain or maintain their license. If they cannot meet the new bond requirements, they may risk losing their ability to operate legally, leading to operational challenges and potentially forcing the business to shut down.

This situation contrasts with gaining new clients or receiving positive reviews, which generally indicate business growth and stability. Similarly, if the board revokes a license, while that would also create challenges, it is a distinct scenario from dealing with mandatory financial bond requirements. Thus, the most direct impact on business continuity from bond issues arises when the bond amount is significantly increased.