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

[kayode10]

There are several ways to avoid bad debt in business. First make sure that all expenses are for acquiring assets and liability for the company. Anyway you are going to take on behalf of the company should go into acquiring assets that will bring in more money for the business.

 

[Swazykid4all]

Most 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.

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[Shigobad20201]

Most of the time , when you don't have enough money to fund or take care of your business , then going into debt to say the business is unavoidable or the business will drown.

Most 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.

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[Abigael]

Most 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.

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Yeah, avoiding debt is the best way to evade bad debt in business. If need arises to borrow, then you should have good financial team that will make plans on how to pay back the loan.

 

[Kaffyfolla]

A good invoicing system is required to prevent bad debt. This is an important part of collecting money. Make invoicing a regular part of your business activity. This will not only help with your cash flow but will also help to keep track of your clients more easily.25

 

[Lucy ID]

There are Some things that you do to avoid bad debit, some like the avoiding bad spending, unnecessary buying of goods, giving out on credit or loans, having a good store keeping book and cash flow book also

 

[Bousine123]

In my business I don't give goods on credit because I didn't borrow to start the business, and what if I want to invest more in the business, I also need money to continue so prefer to avoid bad debt.

 

[Grandeur]

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?

It should be known that bad debt is the funds that cannot be recovered by the company and there's good debt where the money is being recovered. To reduce bad debt in business, company should reduce giving on credit to customers.

 

[Ononivami1]

The best way to avoid bad debt in the business is by not taking selling your products on credit. Debt kills the business very quickly and it could also be prevented by not taking loans.

 

[Bousine123]

To avoid bad debt I don't want to establish my business were people know me because I can't stand anyone coming to borrow and not pay back, it is very discouraging.

 

[kayode10]

One of the ways to avoid bad debt in business is to always acquire assets with the company expense. Another thing is to maintain positive cash flow and save during the rainy day.

 

[tyrim88]

I could remember vividly when we started our business,we were always running into shortfall of restocking back our product,because of the issue of customers not paying up on time,and that really affected our business.But the moment we stoped giving out things on credit,we began to see result.
I could remember vividly when we started our business,we were always running into shortfall of restocking back our product,because of the issue of customers not paying up on time,and that really affected our business.But the moment we stoped giving out things on credit,we began to see result.

 

[Sotherefore]

Well this is something I cannot do.I have to try as much as possible to avoid it because personally I understand what debt is all about. Even now in whatever I am doing I have to raise the needed capital first.

 

[Bookwormlux1]

I avoid bad debts by not even taking them at all. This has been a very strong principle I have been using to make sure I do not get into trouble at all because of debts .

 

[Shigobad20201]

The best way to avoid bad debt is by not taking loan at all because I was advised against it before I started my business, and i had to wait for sometimes and save up before starting.

I avoid bad debts by not even taking them at all. This has been a very strong principle I have been using to make sure I do not get into trouble at all because of debts

 

[Electrohunter26]

The most important thing is to have an amount of spare money just in case of any failure and make a lot of planning before any deal so you know how much you will lose in the worst case scenario and have at least one back up and there's no way to be 100% sure you won't get in debt you just try your best

 

[Achawaskey]

Whenever you want to start a business you bear in mind that depth is also part of the business and you can't do away with it. You can reduce it by making your regular customers pay up 80 to 85% of there purchases, at least the payment can cover the cost of goods and few profits.

 

[Sotherefore]

I don't engage in those things, I raised the needed capital to start whatever business I am interested. It's all depends on what I want. I don't look for opportunities to get a loan for anything.

 

[Bookwormlux1]

I actually do not think there is even a good debt at all. You just have to respect your self and make sure you do not get into debts as paying back is never easy at all.

 

[Shigobad20201]

I actually do not think there is even a good debt at all. You just have to respect your self and make sure you do not get into debts as paying back is never easy at all.

Though there are times when the business might be going through some financial challenges and you needed to borrow a loan to boost up the business , all you need is to borrow a little you can handle.