How have you been able to avoid bad debt in business?

[Ralphjoe]

Bad debt in business is not good for business at all, although you can't avoid debt in business but you can avoid bad debt.
To avoid bad debt in any forms or types of business, never spend beyond your earning and make sure there is good accountability in your business, always keep record of everything you do.

The challenge of bad debt in business is unavoidable as you have rightly said but like you also said we can also avoid this challenge by being accountable in our business as bad debt advisors in a situation whereby we take depth that we cannot pay off and this kind of death comes to b the organisation or business later.

 

[Setfragil]

Bad debts is like termites it will keep eating the business little by little till the business collapses. Debts should be avoided in business if such business want to be successful. I avoid bad debts at all cost by not selling on credits to unreliable customers.

 

[Richard92]

I will never have a bad debt in my business because first of all I meant in one standard rule in my business organisation and the road is that I do not get a loan to start up any business I am doing,i only do business with my money I work for, this is one of the best way to free yourself from unnecessary debt.

The best way to avoid bad debt in business is to always collect collateral before giving any depth to anybody with these you can be rest assured about any debit.

 

[Sotherefore]

The best way to avoid bad debt in business is to always collect collateral before giving any depth to anybody with these you can be rest assured about any debit.

There are sometimes in which the collateral may not even be enough for you to sell and get back the money you gave out as a loan , in this case what do you think should be done .it is advisable to avoid giving out loan at once,

 

[Alexandoy]

There are sometimes in which the collateral may not even be enough for you to sell and get back the money you gave out as a loan , in this case what do you think should be done .it is advisable to avoid giving out loan at once,

A neighbor mortgage his small building that is unfinished. When he was not able to repay the loan the bank forfeited the collateral. That was 7 years ago and until now the property is not sold yet because there are no buyers. The unfinished building has lesser value.

 

[Sotherefore]

A neighbor mortgage his small building that is unfinished. When he was not able to repay the loan the bank forfeited the collateral. That was 7 years ago and until now the property is not sold yet because there are no buyers. The unfinished building has lesser value.

This will now be a great loss to the bank that were offering the loan to the man, I don't see the need for us to risk our life in getting a loan to start of anything, I don't see it as a good idea

 

[tyrim88]

The best way to reduce bad debt is to ensure your possible best not to be in debt at all. Once a business starts owning people or financial institutions, there's a probability that that business might gradually slip into bad debt if care is not taken. I know it can be hard for businesses especially startups not to be in debt but all business should have a Debt management team to for stall slipping into bad debt.

Most times no matter how you try on how to run your business without borrowing,you just have to source for funds elsewhere to fund some projects you can' afford.But the credit collected must be for a viable project that has a high means of bringing in returns and possibly pay up the debt,else it should'nt be taken at

 

[Setfragil]

The best way to avoid bad debt in business is to always collect collateral before giving any depth to anybody with these you can be rest assured about any debit.

The truth is, you cannot totally run away from bad debts especially when you run a small scale business. You can't request for collateral when you sell products less than $2 on credit.

 

[Alexandoy]

This will now be a great loss to the bank that were offering the loan to the man, I don't see the need for us to risk our life in getting a loan to start of anything, I don't see it as a good idea

You are right that the bank erred in giving that loan to the owner of the unfinished building. Now the building is still there, no improvements which means it is still held by the bank in their list of assets. I wonder what happens next because the loand to the building was a long time ago.

 

[Sotherefore]

You are right that the bank erred in giving that loan to the owner of the unfinished building. Now the building is still there, no improvements which means it is still held by the bank in their list of assets. I wonder what happens next because the loand to the building was a long time ago.

You know what ? I think the bank are not willing to sell out the property now and maybe they're keeping it for it to appreciate in price for a long time, they might sell it out in the next two to three years from now when the price will be a little bit reasonable.
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Sometimes when customers get goods or services on credit there is likely to be a bad debt because some of them are not really serious and they are not interested to pay back what they have collected, just avoid giving out goods and services on credit.

 

[Setfragil]

You know what ? I think the bank are not willing to sell out the property now and maybe they're keeping it for it to appreciate in price for a long time, they might sell it out in the next two to three years from now when the price will be a little bit reasonable.
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Sometimes when customers get goods or services on credit there is likely to be a bad debt because some of them are not really serious and they are not interested to pay back what they have collected, just avoid giving out goods and services on credit.

You should not always give credit facilities to customers that are not trusted to pay back the money. Before you sell goods in credit, you must makes sure that the customer is regular, trusted and reliable to pay back the credit facilities on time.

 

[Chibson]

this is why it is very important to have knowledge and understanding of how a business works before venturing into it because when you know how to manage your business, well it will not go into bad debt.

 

[Sotherefore]

You should not always give credit facilities to customers that are not trusted to pay back the money. Before you sell goods in credit, you must makes sure that the customer is regular, trusted and reliable to pay back the credit facilities on time.

But this should not be the case in terms of banking because they are trying to help the small bodies to establish their own business, do you think they have made the wrong decision by giving out loan to people who are interested to survive ?

 

[Kelly5]

To avoid bad debt in any business, you must have a criteria for any customer to meet before being qualified for credit in your business otherwise, you will completely run your business down all the time

 

[Razor1911]

To avoid bad debt in any business, you must have a criteria for any customer to meet before being qualified for credit in your business otherwise, you will completely run your business down all the time

No matter how hard you try, at least certain amount of money will go to bad debt. for that reason it is very important to take security property from the borrower. So that even if they can't repay the loan, at least some losses can be avoided.

 

[Snazzy001]

To avoid this I had to include the Spirit of self discipline within myself and I also had to identify what my ones are and needs are

 

[akinlolu99]

Bad debt in business is a very thing but the truth is that is something that can be avoided if someone should try as much as possible even though the loan is one of the most known ways that people raise capital to start a business that is not a very good thing to do in business because for a business to solidify it is best to start with a fund from your personal account.

 

[Melanie Marie]

Bad debt meaning... customers and/or suppliers not paying or supplying on time? Or just you as the business owner going into debt... either way, just stay on top of things. Watch your spending vs. earning... are you consistently making a profit? Learn and track the times of year when business is doing well. Take a step back on your investment when there are “slow” seasons... then up ^^ it when you know business will do well. As long as there is a profit at the end of the day, stick to the pattern and if things start to change, change the pattern of buying/selling/advertising accordingly

 

[Richard92]

I will never have a bad debt in my business because first of all I meant in one standard rule in my business organisation and the road is that I do not get a loan to start up any business I am doing,i only do business with my money I work for, this is one of the best way to free yourself from unnecessary debt.

Yes I'll be able to avoid bad debt in my business when I manage my business finance well and also do general audit every year.

 

[Ralphjoe]

Can I say avoid bad debt in business, or I say management of resources in business, the reason is that there lot of people that believe if they haven't go into borrowing fund for support of there business or loan for the support of there business, there business or product is liable not to move forward at all, there sentiment is fund moves upward business or product.
You see when you are committed towards what you do, you derive joy in it, I bet you, things will definitely fall into place for you.

I haven't been in a situation whereby I will have bad get weed at my workplace or in the business that I have been apart you need to manage briefly and my secret is that I always make sure that whatever expenditure that I make happen should be very important for the business.