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

[Senator]

As a new business, it is not a wise thing to start giving your products or services on credit to clients. When your business has grown some more, you can now hive credits to only credit worthy clients. That way, you'll eliminate bad debts

 

[Sotherefore]

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.

For me I just really need to make sure that I do not get a loan to start up any business and also I do not accept you paying for goods on credits because this are all not good for business.

 

[delnovem]

Set realistic credit limits. State your terms and conditions clearly on business documentation. Send invoices quickly. Find out whether customers operate a monthly payment run.

 

[Setfragil]

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 ?

The banks that are giving out loans to people are also not running a charity organisation, they give out loans in order to make profits from it. You don't give out loans to just anybody because you want to help them, you must make sure that they are able to pay back the loan before they have access to it.

 

[Sotherefore]

The banks that are giving out loans to people are also not running a charity organisation, they give out loans in order to make profits from it. You don't give out loans to just anybody because you want to help them, you must make sure that they are able to pay back the loan before they have access to it.

Yea,they have to make sure they present a trusted source of income they will be using in paying back the loan before they are eligible, some banks do give out loan without even considering about the collateral.

 

[Yusuf1]

Bad debt is very bad for business and it can even go as far as destroying the business. For me if anybody wants to get rid of bad debt they should just stay within their means and not spend beyond their means

 

[Kelly5]

Be very strategic and decisive when it comes to dealing with matters of debts in your business otherwise these bad debts accumulation will simply ruin things for you in that business

 

[Thinker009]

It's very hard to avoid bad debt in business , because most times some customers might need your help to pay back the debt they are owing you , and the interesting part is that most times the customers might be a high profile one and you have no option than to give the loan and later they start failing to repay

 

[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 the best way to avoid bad debt in the business is not to get loan from the bank or give anyone credit on sales with this you can avoid bad debt in your business.

 

[Ralphjoe]

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.

The thing is that any company or a piece there it will be very difficult for you to have both debt completely because taking that is very important for a business to be able to operate well as you do not have cash all the time to run your business.

 

[Good-Person]

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.

One of the biggest reasons people get stuck with bad debt is the fact that they were not able to make a good and proper plan to avoid bad debts. People often make the mistake of taking loans and due to lack of planning go bankrupt. this is why I am always against taking loans.

 

[Razor1911]

One of the biggest reasons people get stuck with bad debt is the fact that they were not able to make a good and proper plan to avoid bad debts. People often make the mistake of taking loans and due to lack of planning go bankrupt. this is why I am always against taking loans.

Exactly before taking any loan, individual or any firm should have proper plan how to utilise each and every penny. Without having a proper plan, they are highly susceptible to make losses. And in that case the debt may become bed debt.

 

[Senator]

By bad debt I guess you mean when customers owe the business and not the other way round?
For me I have a strict no credit policy, I have explained to my customers why I can't afford to give them credit and they are abiding by it. Better to have stock than being owed.

Lol!! I like your move here. So firm and true to the point with your clients and customers alike. With this position, you can be certain that you won't be running the risk of any bad debt records in your account books at least. Good one there

 

[Setfragil]

Yea,they have to make sure they present a trusted source of income they will be using in paying back the loan before they are eligible, some banks do give out loan without even considering about the collateral.

It will be very difficult for you to see any bank giving out loans without collateral. When banks gives out a loan to someone, it is likely the person operates a salary account with a reliable company or work with the government.

 

[Ebro01]

Bad debt is a big problem in any business because it cripple the capital for investment and to avoid this you should try and monitor the follow of money , spending and income.

 

[skyliequiz]

Setting up appropriate credit management rules and procedures, as well as ensuring robust internal control systems, can help to limit the risk of bad debt.

 

[Sotherefore]

Yes the best way to avoid bad debt in the business is not to get loan from the bank or give anyone credit on sales with this you can avoid bad debt in your business.

Sometimes it is said that being in debt is always a bondage and that is what we really need to avoid especially as a new business personel because it can ruin a business if care is not taken.

 

[Bousine123]

I think it's by cutting cost and getting rid of liabilities that will cause me to spend unnecessarily. I also make sure I do proper accounting.

 

[Chibson]

Bad debt can hamper the growth of a business and that is the reason why it is very important for a business owner to have knowledge of how to manage finance.

 

[Oliver4smile]

There was a time I was trapped in a lot of debts, I had to sit down and think about what caused it and I later found out I need to avoid getting myself into unecessary expenses that can make someone wallow in debts