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

[Ellamma]

Depts are really dangerous to business, it can bring a business down within a short period, I avoid borrowing money for business nor going into any kind of loan so I don't go into Dept and eventually end my business

 

[Good-Person]

That is just the thing, there is no how you will involve the police if the products is just $10 or maybe $20. Because involving police you will even spend more than what you were trying to get from the person that owns you.

$10 or $20 is considered a very low amount and police will do nothing. Usually police would only get involved when the scam involved hundreds of dollars or hundreds of thousands of dollars.

 

[Sotherefore]

$10 or $20 is considered a very low amount and police will do nothing. Usually police would only get involved when the scam involved hundreds of dollars or hundreds of thousands of dollars.

Sometimes here the police are not even trusted ,you shouldn't even consider exposing it to the police because they are not going to help you to make the things easier , they will even make it very difficult for you to recover it because the charges will be too much.

 

[Yhubee]

If its actually possible not to be on debt at all,which I believe is, that is key. Effective strategies and qualities should be put in place to avoid going into debts.The business owner should be able to manage resources in the best way and not the other way round.

 

[Suba]

I think in the business world bad debt will be difficult to eliminate but we can reduce or minimize the risk of bad debt, first you determine a decent payable account, for example 20% of the total merchandise inventory, secondly you have to be selective in choosing customers who will buy goods with debt, the more long time you are a businessman then you will be able to read the character of the cutomer who will pay or not.

 

[tyrim88]

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?

Getting into bad debt can be very detrimental to the health of any business.I as discussing with a friend who is into finance management with a bank,he told me that most persons who collects loans would always wants t use the profit from the loan business to pay back,that it is best to be keeping the profit so that when the period of repayment reaches you give them back the capital.

 

[Toyoabasi]

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?

To best way to reduce bad debt is by not incurring it at all.
Many start ups usually crumble early because of too much debts incurred.
It is better to try as much as possible to manage profits than to go borrowing.

 

[Senator]

To be able to avoid bad dents in your business, you should ensure that not everybody is qualified to be allowed to get or buy products on credit from you, otherwise, you will be loosing a lot of money innyur business non stop

 

[Essy]

Many suggest staring away from debt is a good way of staying from bad debt

 

[Seno inyang]

These ways have really been helpful...
Begin to chase payment immediately a debt is overdue to avoid incurring extra charges.

Send invoices quickly.

Define your terms and conditions clearly on business documentation.

Run a credit check on customers.

Find out whether customers operate a monthly payment run.

 

[Sotherefore]

The most important thing in this aspect of life is just discipline,when you are discipline you will not go into bad debt by getting a loan from people, a loan that you are not able to pay back or giving out product on credit to people especially when you are doing business.

 

[Bright7777]

Bad debts are really very unavoidable but bad debts can still be unavailable. Dealing with honest customers should be the solution and avoid those that like coming to get debts.

 

[Heatman]

Bad credit is not a good thing for a business, it can make a business rundown totally. And the only way to avoid a bad debit is to prevent the selling of product for customers that not hold money. I can see some business Centre that will write it on entrance wall that 'No Credit To Day, Come Back Tomorrow' or they will right 'Pay Before Service'. This indicate that they are not selling credit product.

When you keep getting into unnecessary expenses with your business, it's most likely going to drag you down into big debts that will be hard for you to pay off. Cutting cost is very important for any business survival.

 

[Tislad]

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?

Well what is bad debt? It is a debt that can't be recovered again due to the death or other occurrence of the debtor, so as a new company why would you start with debt.

 

[Bright7777]

Every sensible entrepreneur should avoid bad debt even if they have to involve the police because bad debt will ruin your business. Every businessman should look for honest customers.

 

[Cyrus@21]

Credit sales is part of business, but sometimes it results in bad debt. To avoid bad debt is to know the people you extend credit facility to. Some customers who are not credit worthy should not be given credits. I think this is one of the ways to avoid bad debt.
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Credit sales is part of business, but sometimes it results in bad debt. To avoid bad debt is to know the people you extend credit facility to. Some customers who are not credit worthy should not be given credits. I think this is one of the ways to avoid bad debt.

 

[Innocent Jeremoth]

Filter your customers. Not all customers are good for your business. ...
Require up-front payments. ...
Set reasonable credit limits. ...
Provide clear payment terms and penalties.Improve your accounting. ...
Implement strict collection procedures. ...
Use cloud-based software for debt collection.

 

[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 to avoid bad debt in your business is not to give out credit at all so that there will be no possibility of detect as it is when you give her a credit that there will be a possibility of the person that you gave her that credit to not paying back.

 

[Godspower]

The best way to reduce bad debts is to adhere strictly to the policy of selling on it to anyone no matter the status of the person. Most bad debtors are mostly close friends and it might be difficult to recover money from them due to certain allegiances, so it's better to avoid them owing you in the first place.

 

[kinqzbitz]

Well I try to advertise my products very well to get more customers and make more profit then I treat my customers well all this to actually avoid going into any kind of debt