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

[Skysaint]

That's through making enough savings for the business before it's startup, and also a reserve that will keep the business going for some time. Because owing debts at the early stage of business ain't that good

 

[Kubiat-Abasi]

I'm not a business owner yet but I will avoid loan that comes with interest or even high interest at all cost. Debt? I'll try not to incur debt as the experience is not even palatable.

 

[Sotherefore]

I have been able to avoid bad debt in a business when I do not give products on credit to anybody or give out loan to people to start up a business especially people I suspected that they may not be able to pay back.

 

[Immilash]

It is very important for newly established business to avoid bad debt at all cost
Bad debt can have a detrimental impact on a business, putting its survival at serious risk. Majority of startups will face financial challenges at the early stage in business and that can lead to early closure of once promising business.

what is the best way to reduce bad debt?

that's very true ,debts are not good for you as a business man ,you need to keep every where clean,stay away from debt. i don't say it is not a good idea but you have to keep your eyes away from it,debt at not meant for business individuals

 

[Dagm1]

Effectively the just manner in which I used in decreasing poor financial obligations it through granting credit rating to credit rating deserving companies or even people. this is actually the just manner in which I have actually utilized to prevent the circumstance of poor financial obligations in my company since our team can easily understand those individuals that are actually trigger in paying out off their financial obligation coming from their background along with exactly how they have actually been actually paying out off of their financial obligations.

 

[Ceeny007]

As a business owner it is very unlikely infact almost impossible that you will be able to avoid bad debt so you have to make provision for it

 

[Ezekiel]

Every thing in life is based on plan and strategy,most person or business owners have failed to layout plans some does but refuse to abide by it.make people or customer sign agreement that will help to avoid bad debt

 

[Ralphjoe]

It is very important for newly established business to avoid bad debt at all cost
Bad debt can have a detrimental impact on a business, putting its survival at serious risk. Majority of startups will face financial challenges at the early stage in business and that can lead to early closure of once promising business.

what is the best way to reduce bad debt?

I think the best way that we can actually avoid bad debt in our business life altogether is by not giving out credit at all to anyone because once we are giving a credit to people we should have it at the back of our mind that there might be situations of bad debt.

 

[Tracee]

I try as much as possible never to take loan ever again, ever since I fell in that trap some years back my look on it hasn't been the same, how many of us who have taken loan notice you have a little hardship getting the money to pay back unlike other normal days?

 

[Shigobad20201]

I never advise anybody to start a business with a debt because it nearly ruin my business, I was always thinking about returning the money I borrowed , and the money I am returning is supposed to be buying goods to fill the shop,

 

[Sotherefore]

I can never be in-debt because I understand that all the money I need to do something especially business are not something that can be collected from any individual, it is something that can be raised by the individual who is thinking of going into a business.

 

[Kelly5]

In avoiding too much if bad debt in my business, I have made it a policy that i don't give credit lines to customers who are still new to my business. Anything shot of this criteria, doesn't get any credit from me

 

[Senator]

Sometimes, to be very wholistick on the issue of this bad debts,one can simply say that they don't offer any debt service for their businesses. That can go a long way to reduce the frequency of bad debts in ones business

 

[Justin]

I don't have bad debt, I don't have a business either. If you have a business and if you have a bad debt, your business will suffer lot, your business might even fail due to bad debt.

 

[eLdavis]

That's through making enough savings for the business before it's startup, and also a reserve that will keep the business going for some time. Because owing debts at the early stage of business ain't that good

Good one. Many business owners do not have reserves they can fall back too I'd things are not going well in their various business, they just rely on the business itself ,they forget that the business would still need some form of support one way or the other.

 

[Peskyblaise]

Bad debt kills businesses like HIV and AIDS and it's not good for a newly established business cos you may end of folding it up on the start.. To avoid this, you need to know the kinds of goods you are giving out on credit.

 

[Good-Person]

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 really great way to avoid bad debt is to avoid taking loans at all cost. Secondly, never give your product at credit to all the customers and only give credit to those who you trust. You can give goods on credit to those customers who have a good credit history.

 

[YERUS]

It is very important for newly established business to avoid bad debt at all cost
Bad debt can have a detrimental impact on a business, putting its survival at serious risk. Majority of startups will face financial challenges at the early stage in business and that can lead to early closure of once promising business.

what is the best way to reduce bad debt?

I try as much as possible not to borrow or get loans. i think it is bad for a business that is just getting started. Inability to pay back the principal would render the loan collector or debtor unstable. The business may also be affected.

 

[Lens]

At the initial stage of my offline business, I needed money for expansion but I eventually landed myself in a very serious debt. It nearly vanished my business after I have made all payments. That's the more reason why its not advisable to start business with loan.

 

[Ralphjoe]

Reducing the amount of cash available to run the business day-to-day
Compromising your ability to pay your own creditors
Conveying a business image of disarray or disorganisation to the business community in general, but in particular to your staff and customers
Negatively affecting plans for growth
Introducing the threat of insolvency if bad debt levels are high

I would never find myself in any situation whereby I will have a lot of bad debt because I have made up my mind that any time I start up any business I would never give out a loan to anybody or credit in whatever guise because I know people are not trustworthy when it comes to money.