Bad debts of Business?

[Setfragil]

There s no way you will run a business without incurring bad debts. We should always make sure that bad debts are avoided at all cost to save the business from collapsing. To avoid bad debts, credit facilities should be reduced or avoided at all cost.

 

[Setho]

Bad debts is one of the things that can destroy a business really fast . you should jot be quick to lend people on credit without having a way to get the money back.

 

[eLdavis]

Bad debts are usually people who buy credit from you and do not pay back. or in some cases they are debts you are unable to collect back in cases like the person dieing and there is no way to collect it from someone else.

 

[Sotherefore]

About that is a dip in which someone could see but you are unable to collect it from the person, sometimes it this could the bringing in of the police,but there is nothing you are going to do about it since you are unable to collect you need to forget about it.

 

[Razor1911]

Bad debts are usually people who buy credit from you and do not pay back. or in some cases they are debts you are unable to collect back in cases like the person dieing and there is no way to collect it from someone else.

The bad debts are really very tough to collect. It is actually the fault of the lender of the money, at least a security money should be deposited with respect to that loan amount. Just like in banks the collateral property has to be provided.

 

[eLdavis]

The bad debts are really very tough to collect. It is actually the fault of the lender of the money, at least a security money should be deposited with respect to that loan amount. Just like in banks the collateral property has to be provided.

To prevent this, that is why most companies run a policy of no credit allowed. In such business there is usually a sign that clearly states that they dont accept credit.

 

[Razor1911]

To prevent this, that is why most companies run a policy of no credit allowed. In such business there is usually a sign that clearly states that they dont accept credit.

I have seen many businesses use this no credit option. But I don't think it is good for businesses, because mostly customers will feel it is very strict. I understand it is the benefit of the company of the business, but customer will not be satisfied with that.

 

[eLdavis]

I have seen many businesses use this no credit option. But I don't think it is good for businesses, because mostly customers will feel it is very strict. I understand it is the benefit of the company of the business, but customer will not be satisfied with that.

I quite get your point, but i believe they themselves would understand, that is why most companies or business tend to put out a clear sign. So before a potential customer decides to work in, he or she has already seen the sign so its left for them to continue doing business there or go. That way they wount be offended when a credit offer is rejected. Even as at that i have seen businesses who practice this still give out credit to some selected group of persons

 

[Jlife]

Personal business are not advised to give out loan to anyone or give out goods or services on credit because this is one of the things that will lead to bad debt and you may not have any other things to do than to forget about it.

 

[Senator]

A bad debt of a business is simply explained as money or monies owed you by client or clients in your business that failed to pay back the debts they owe. This should not be too much of occurrence in your business because it can run you down

 

[Setfragil]

Bad debts are inevitable in business, that is the reason why we should learn to give credits facilities that will not have much impacts on the business should the debtors default in payments.

 

[Richard92]

Bad debt can come from anybody, it can come from a firm, a club and so on. But to my own perspective bad debts are money a person lend from an organization which could be monetary fund. In a nutshell bad debt are irreplaceable money.

Most of the business suffer bad debt when it is not properly manage that is why as a business man you must manage your firm properly and always have general audit so that you will not suffer bad debt.

 

[Setfragil]

Bad debts is like a cancer to the business, it destroys the business gradually and slowly if care is not taken the business will fail sooner than expected. We should make sure to avoid it at all cost to save our businesses from failing.

 

[Bousine123]

The are the unredeemable lossses of a business. They can really cause you a lot of loss in your business if you are not able to properly manage them.

 

[Josemendez]

Bad debts are those debts that are needed for the business to progress but are were not paid as at when due. This affects the operation of the business drastically.

 

[tyrim88]

Bad debt is money owed to you by a client, that you are unable to collect and therefore have to write off. A bad debt can happen for any number of circumstances, but for the majority of the time it will either be due to offering credit to an unsuitable customer, or due to a customer’s circumstances changing.

A lot of factor can actually make a business owner to go into bad debt,it could be as a result of not doing a proper diligence in an investment venture or not getting paid from a client,but some unforseen cercumstance can creep in as well.

 

[Buba]

Write your reply...bad debts of business is when like company set up there business by making profit and the business break your plan this is bad debt.

 

[Ceeny007]

What are the bad debts of the business? How bad debts occurs during operation of the business? And how these are treated in financial statements of the company?
Your knowledge is great and need suitable answer because I have to do it in financial statements.

It cannot be avoided but while writing a business plan you should never make provision for bad debt so as to be taken serious by lending institution

 

[tuna89]

These are major reasons why one should not allow debts within business else issues may arise and you only achieve part payback and lose the rest, one should not lay the business on such foundation

 

[Psalmseen]

Bad debt is conventionally known to be an irrecoverable debt of an organization. Too much if bad debts ruin a company. If bad debts get to a stage, the liquidity of the company has problem. And bad debt is treated as an expenses.