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

[Setho]

You are not going to be experiencing by the debt if you are not even giving them in the first place. This is why I am only making transactions to people who have cash at hand.

 

[jordans]

Good frameworks are perfect way">the most perfect way to maintain a strategic distance from awful obligation. Here are our beat tips: Send out your solicitations and explanations on time, ideally as before long as the work is total. Bigger businesses have set installment cycles, so incite invoicing implies you’re less likely to miss the another installment cycle.

 

[Syldan]

Based on my experience I dont think is really possible to avoid debt in any form but I believe it management is necessary either directly or indirectly depending on the strategy used in managing such kinds of debt.

 

[Setho]

I am only going to be giving out goods to people who have salary account or well verified means of income so that I can easily deduct it from there.

 

[Lens]

One of the best way to avoid bad debt in business is not to try to take loan for a business that is at the cradle. The business is still growing and if you take loan for it, it may crumble.

 

[Smiles20]

There is no going to be bad depth if you are not even giving it in the first place and I think that is one of the simple strategy that a lot of businesses need to start implementing.

 

[Shigobad20201]

To some people , debt is inevitable because they dont have any choice than to get a loan if they wanted to start a business, while some don't need a loan because they are loaded financially.

Personally I have always consider debt as inevitable in every form of business which to some extent it can only be control or manage but it can not be totally avoided no matter how.

 

[Kelly5]

I don't just give any customer that request for credit such help, only do this for customers that have been my loyal and also have become a very close and trusted individual in the cause of our running business together. That way, I would be sure that bad debts don't become a recurring situation in my business.

 

[joy101]

Set reasonable credit limits
Setting a sensible credit limit for new clients limits misfortunes through terrible obligation. Credit cutoff points can generally be expanded when another client shows their unwavering quality, and you're glad to broaden their terms.

It is not really good for newly business to start buying with debit if actually you want your business to start growing you need avoid debt in your business, is very important for newly starting business.

 

[Emmy]

Bad debt can ruin a business so it's better to strategize and be strictly formal in relating with users or customers. Bad debt is written off as an expenses in income statement.

 

[Syldan]

Actually debt are inevitable as everyone knows most especially dealing with customers and distribution even though it can be managed but can not be totally eradicated no matter how you can try.

 

[Chibson]

If you want to go into a business you must first estimate the amount of capital needed to venture into such a business. your inability to do this may actually lead you into a debt in which you cannot be able to pay back.

Another thing is that you need to have a very good collateral if you really want to take a loan in order to venture into a business. I will not venture into a business if I don't have the needed capital to start.

 

[Shigobad20201]

One of the best way to avoid bad debt in business is not to try to take loan for a business that is at the cradle. The business is still growing and if you take loan for it, it may crumble.

I prefer starting my business without a loan and thats the reason why i saved up to two years before starting my small business because I know the implication of starting a business without having the proper knowledge of how to pay back.

 

[Lens]

I prefer starting my business without a loan and thats the reason why i saved up to two years before starting my small business because I know the implication of starting a business without having the proper knowledge of how to pay back.

You have actually done the best thing for yourself and the only thing that is left for you is to ensure that the capital that you were using for the business does not diminish.

 

[Sincerem]

If you want to go into a business you must first estimate the amount of capital needed to venture into such a business. your inability to do this may actually lead you into a debt in which you cannot be able to pay back.

Another thing is that you need to have a very good collateral if you really want to take a loan in order to venture into a business. I will not venture into a business if I don't have the needed capital to start.

Bad debt can also comes in different ways, it can also be a situation in which you have given out your products to people on credit and these people are not able to pay back the money they have collected your product , this is also a bad debt.

 

[Chibson]

Bad debt can also comes in different ways, it can also be a situation in which you have given out your products to people on credit and these people are not able to pay back the money they have collected your product , this is also a bad debt.

Yeah, if you give out your product to people and they are not able to pay back it will definitely lead to bad debt and that is not good for your business. It is very important you are very disciplined in business whether it is your family members or your friends because there are decisions you will take that would affect your business negatively.

 

[Abezol21]

I create rules in order to manage my business effectively and also consider the following
1. I select customers who are credit worthy and
2. I also request for upfront payment to ensure my business run efficiently.

 

[Sincerem]

Yeah, if you give out your product to people and they are not able to pay back it will definitely lead to bad debt and that is not good for your business. It is very important you are very disciplined in business whether it is your family members or your friends because there are decisions you will take that would affect your business negatively.

Discipline in this area is very important but at the same time it will be very difficult most especially if these thing directly involved you and your friends or maybe people you know , how should we do it ?

 

[Syldan]

In business I believe bad debt are quite inevitable but to a greater extent it can be controlled this is because when plans are been made effectively it's quite possible to attained a goal that you have set for your self.

 

[Ogbes]

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?

In active business bad debt is inevitable which can only be minimize in other not to run at loss,especially when you business involves services or good before payments involving big and old customers