Bad debts of Business?

[kayode10]

Bad debts are those things you are choir in the name of the company that are not adding to the overall productivity and value of the company. If you have too much of bad debts it can affect the positive cash flow or the business which may lead to bankruptcy.

 

[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.

This is why I do not recommend giving goods on loans. i have seen many creditors refusing to pay money and the shopkeeper suffers. Many fraudsters "purchase" products on credit from big stores and businesses and refuse to pay.

 

[YERUS]

Bad debts is mostly involved in business owners who get loans from financial bodies to run their businesses and don't pay back on due dates.

You are correct.
When people especially those in businesses obtain loans and are unable to pay back, such has become a bad debt. The person's business may deteriorate and collateral may be lost.

 

[Dagm1]

Bad debt refers to money owed to you by a customer that you are unable to collect and must write off. A bad debt can occur for a variety of reasons, but the majority of the time it is the result of providing credit to an unsuitable consumer or a change in the customer's circumstances.

 

[Jobiezue]

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.

Debts in business isn't a good thing to allow for your business because it's not going to allow your business to grow. Instead of adding funds to grow your business, you will be paying off debts.

 

[ganibade]

Bad debt in business. Debt is debt,no bad debt. For business manager is not good to have debt. Debt cause down fall of a business.

 

[Heatman]

Concerning bad debts of business. Well, I believe that bad debt is referred to when a customer refuses to pay for goods, products or services rendered om credit and in expectation to pay in at when due but goes south. These kind of customer or debtors are business killer which doesn't want growth for such business

There are some customers that are very good at putting you into debt when they fail to pay you the money they are supposed to pay after being sold products on credit.

 

[greenie]

Concerning bad debts of business. Well, I believe that bad debt is referred to when a customer refuses to pay for goods, products or services rendered om credit and in expectation to pay in at when due but goes south. These kind of customer or debtors are business killer which doesn't want growth for such business

 

[Sincerem]

Bad debts can be really detrimental to w business as you are losing a lot of initial investment money to debtors who fail to repay you and thus you had to write it off. You should always endeavor to have a written agreement that can serve as evidence when selling on debt to a customer.

 

[Shigobad20201]

There are many aspect of bad debt in business , it might be a bad debt from the customers that bought good from the owner of the company and decided not to pay back or

Concerning bad debts of business. Well, I believe that bad debt is referred to when a customer refuses to pay for goods, products or services rendered om credit and in expectation to pay in at when due but goes south. These kind of customer or debtors are business killer which doesn't want growth for such business

 

[Sotherefore]

The only way to stop this is to stop borrowing money unnecessarily. If a business organisation is having a bad debt, they should try as much as possible to stop borrowing and try to grow the business with the available fund. This won't be easy with inadequate Capital. But this is the only way.

 

[Shigobad20201]

Bad debt in business in my own opinion is when you borrowed a loan which you cannot afford to pay back and its affecting your business negatively ,thats why its good to have a better plan before you start borrowing money.

 

[tyrim88]

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.

One of the things that can cause bad debt is if the management does not know how to properlly balance his income and expenses in his spreadsheet,that can actually cause him bad debt,if he borrowed money for his business,bad debt is in loss account.

 

[Shigobad20201]

The main reason why you need to employ a good accountant is to be able to have a proper monitoring of your credit and loss , so that you will know will you are making profits and when you are running at loss .