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

[Bookwormlux1]

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.

That is you be realistic in this situation now, but the fact is that a lot of people do not have this mentality and they always collect big money provided it is known in this case. It is this bad.

 

[Setho]

As a new business owner especially it is going to be very bad for your business if you are going to continuously give out loans . This is why I usually employed a cash and carry method so that I am definitely going to save my business in case of any fall that might arise in somebody unable to pay.

 

[Lens]

I have lots of unsettled loan accumulating. I will strongly advise young businessowners not to resort to taking loans at all. Loans could be very detrimental.

 

[Shigobad20201]

That is you be realistic in this situation now, but the fact is that a lot of people do not have this mentality and they always collect big money provided it is known in this case. It is this bad.

Imagine collecting a huge amount of money as a loan when the return of your business is just not up to ten percent of the actual money you borrowed , this alone can ruined the business. .

 

[Bookwormlux1]

Imagine collecting a huge amount of money as a loan when the return of your business is just not up to ten percent of the actual money you borrowed , this alone can ruined the business. .

That is to let you know how wicked some of these companies are when they expect you to return their loans. They're too strict for me seriously.

 

[Syldan]

Budgeting and daily planning on how to run the business effectively without debt. Most of the business experience debt because they don't planed on how to administer there products to it customers.
Sometimes I consider bad debt in business as inevitable even though sometimes it greatly depends on how you planned to run your business. There are some people who doesn't offer their product on credit because that is how they have planned to run the business.

 

[Shigobad20201]

I have lots of unsettled loan accumulating. I will strongly advise young businessowners not to resort to taking loans at all. Loans could be very detrimental.

the reason why i keep advising people against starting a business with a loan I that i have seen what a loan does with a business most especially when you don't have any other source of income.

 

[RG5]

Bad debts can significantly affect successful businesses, sometimes leading to the closure of the business. So, if you thought what security measures can you take to protect the future of your business so here are some points you can follow. So here are some tips - set your payment terms – and stick to them, work with the professionals, up to date systems and processes, stay in touch etc.

 

[Setho]

The most simple way of avoiding any kind of bad debt in business is you should make a policy of cash and carry only. If you want to be a little bit more lenient then somebody should be able to provide proof that they are going to pay you out and appointed date or allow you to withdraw it from their account automatically .

 

[Lens]

the reason why i keep advising people against starting a business with a loan I that i have seen what a loan does with a business most especially when you don't have any other source of income.

Mine worked well initially, I was able to make repayment very easily because the business was doing well , until I was robbed by some gang of harmed robbers. It was a pathetic situation. I even sold my car just to meet up with repayment.

 

[Setho]

I have seen a lot of businesses in the past who were forced to close down because of bad debt. The system that I have brought for my business is that everything is going to be sold on a cash and carry basis and as such I do not lend out money or goods to anybody.

 

[Ononivami1]

I have seen a lot of businesses in the past who were forced to close down because of bad debt. The system that I have brought for my business is that everything is going to be sold on a cash and carry basis and as such I do not lend out money or goods to anybody.

The bad debt could also accumulate as a result of loans. When the loan is just too much, it will affect the business negatively and will lead to the Accumulation of debt.

 

[Syldan]

I had two principles governing my business that I always abide by such rules and never to go against it. In my business, I dont offer goods to any body on credit and no supply to an incompetent customer.

 

[Mayox25]

A new and growing business must as best as possible avoid bad debts. Bad debts occur when goods are sold or services rendered and customers do not pay fully or don't pay at all. When this happens it impact negatively on the business. So policy should be put in place and followed by the management to limit the occurrence of such.

 

[Sotherefore]

Well it is very simple , I just have to make sure that I do not get loan to start up anything and even if I am establishing a business I also have to make sure I do not give out products on credit , this is likely to destroy most people's business.

 

[Shigobad20201]

The only way i have been able to avoid bad debt is to make sure i don't take any loan that will affect my business negatively , so i normally take loan that i can afford to pay without using the business fund.

 

[Syldan]

Actually I dont have a business for now but I have better suggestions on how to avoid bad debt in a business such avido the supply of goods without receiving money form your customers and also abide by a certain rules.

 

[Ononivami1]

Mine worked well initially, I was able to make repayment very easily because the business was doing well , until I was robbed by some gang of harmed robbers. It was a pathetic situation. I even sold my car just to meet up with repayment.

That is a very pathetic situation. Nevertheless, I don't really support taking loans for a small business or a new startup. It will be very difficult to meet up the loan payments initially.

 

[Syldan]

Actually I think, debt is an inevitable phenomenon in every form.of business though I have not personally owned a business but I know it's one thing that alot of business are suffering from.

 

[Bookwormlux1]

I've been able to achieve this by developing a high sense of discipline , and programming myself to make sure that I always work hard to generate the needed funds that I will be needing for anything you want to do.