Bad debts of Business?

[Stnicholaz]

Bad debt to some extent inevitable in businesses but we should try to reduce it to bearest minimum. Bad debt should be included in debt side of financial statement as part of expenses.

 

[tyrim88]

Bad debts are debts incured by a a customers that have grown to the extent where you have to forgive the debt. You should avoid this by strictly selling on cash and carry basis only.

Bad debt is something no business person or outfit would like his business to go throug,it is from experience that will make some outfit to begin to be strict in the way the handle customer.For the business to grow it needs to deal in cash at hand basis.

 

[Kelly5]

A bad debt of business are debts that people who buy products or services on credit or with a promise of paying back at a later date from your business never pay back. They really constitute loses to your business

 

[Sotherefore]

A bad debt of business are debts that people who buy products or services on credit or with a promise of paying back at a later date from your business never pay back. They really constitute loses to your business

Some people can actually use these things to run a lot of people's business down. Whenever I am starting my business I will always make sure credit giving is not included because that is what people will use to bring down your business.

 

[Senator]

That is why as a new business, you should not be giving your products or services on credit to your customers all the time. At least not for the moment as your business is still new and trying to grow

 

[Kunkun]

Bad debts are indeed detrimental to every business, bad debts are basically the debts incurred a business or it's owner that didn't contribute positively to the business as a whole in the long run

 

[Ralphjoe]

Bad debtors are those who collected products on credit and refuses to pay as at when due. Bad debtors turn their deaf ears to your plead to come pay up their debt. Some of them goes a long way to even pick up fight as a way of preventing you to request for your money.

The thing is that any business owner that is in the habit of giving out good on credit should always have it at the back of his mind that he will always have bad debt as it's not everyone that he gives credit that will likely pay back so it should have what they call in accounting provision for bad debt.

 

[Good-Person]

Bad debtors are those who collected products on credit and refuses to pay as at when due. Bad debtors turn their deaf ears to your plead to come pay up their debt. Some of them goes a long way to even pick up fight as a way of preventing you to request for your money.

There is a lots of problems related to bad debts in my country. Most of the people are just not willing to pay the debts and this is why many people just refuse to give away products on credit. This is one of the biggest reasons I do not like offline business in my country.

 

[Mayox25]

Bad debt is money owed to you or your business for goods sold or services rendered to a customer who have refused to pay over a long period of time. In preparing the financial statements there is provision for bad debt.

 

[joy101]

I think a bad debt in business is when a person is giving he / her product in credit and this will really bring your business down if time no taking, given out your product in credit can harm your business.

 

[Kubiat-Abasi]

Bad debt is that money you'll try to get and have low chances of getting it. I don't support debt neither do I even support lending because I've passed through that rocky path and it didn't work out.

 

[Blessedsam60]

Bed dept as the definition goes are money owned by your customers and have not been paid. This dept are so detrimental to one's business as it can ruined the entire business if it's in excess

 

[Kane]

If you are selling your products on credit and if you have failed to recover the credits, your business will go through bad debt. If you are a small business, you need to avoid bad debt as this can lead to the closure of your business.

 

[Ezekiel]

I could still remember when I was working for a private school here in my country,the principal could not handle the bad debt issues,so I was appointed to assist is reducing the bad debt,to reduce or stop bad debt in you company,their should be a signed documents for anybody who wants to get money,and stipulated payment date,their should be follow up immediately it is payment date is due

 

[Good-Person]

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.

Yes, having a bad debt is not something good for your business. It is always much better to deal with good clients and it is always really important to create documents and papers that would proven that your cleint owes you money in case you need to take the help of law.

 

[eLdavis]

Yes, having a bad debt is not something good for your business. It is always much better to deal with good clients and it is always really important to create documents and papers that would proven that your cleint owes you money in case you need to take the help of law.

This is why I don't blame people who setup rules and laws that do not allow credits with their business, because most times it can be really difficult to get these persons to pay back after you have given then, the business might end up going into losses.

 

[Good-Person]

This is why I don't blame people who setup rules and laws that do not allow credits with their business, because most times it can be really difficult to get these persons to pay back after you have given then, the business might end up going into losses.

Yes, this is tru. many retailers never allow to give products and goods on credit. This is because they have been cheated by many customers in the past. The big problem is that not every customer is willing to pay the money outright and they prefer credit all the time.

 

[Ghost1]

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.

I don't just understand why would entrepreneurs make such mistakes of selling on credit to customers you don't trust. It's absurd

 

[eLdavis]

I don't just understand why would entrepreneurs make such mistakes of selling on credit to customers you don't trust. It's absurd

Its really suprising why many would do this. I have seen this happen on some many cases they give out goods and services on credit all in the same of saying they are trying to be friendly or make new customers, personally I feel there is no need in starting what you can't finish.

 

[Ralphjoe]

Bad debtors are those who collected products on credit and refuses to pay as at when due. Bad debtors turn their deaf ears to your plead to come pay up their debt. Some of them goes a long way to even pick up fight as a way of preventing you to request for your money.

Well what bad debt of a company signifies are those debt that cannot be recovered by the business again and I believe that the company or business we bear the cost of that so any business or company that I want to start I will definitely put that at the back of my head.