What are bad debts of the business?

[jay]

I much hear about bad debts of the business. What is this term and how it is treated under business principles?

Getting into unnecessary spending is something that should be avoided by all cost especially in a new business because it is going to drag your business into a serious bad debt that you can be able to pay off.

 

[greenie]

an entrepreneur there isn't anything incorrectly in getting cash to improve your business and that is known as a decent obligation since you trust that when the business develops it can take care of the obligation and even produce benefit. In the interim, on the off chance that you have a business that is as yet battling and you remove from the cash you should use to improve the business to purchase property or resources then it is an awful obligation.

 

[Sotherefore]

When someone is not able to pay you the dept he or she has collected from you then obviously that is a bad debt, also a situation in which you are not able to pay someone the dept you have collected it could also be a bad debt.. it is always on
Two side.

 

[Shigobad20201]

Non challant and unnecessary spending of the business fund most of the time leads the company on the verge of debt and could also collapse the business, so it should be avoided at all cost.

Getting into unnecessary spending is something that should be avoided by all cost especially in a new business because it is going to drag your business into a serious bad debt that you can be able to pay off.

 

[Sotherefore]

Non challant and unnecessary spending of the business fund most of the time leads the company on the verge of debt and could also collapse the business, so it should be avoided at all cost.

That is why I always say that discipline and orderliness is one of the best way to succeed in business. Someone who is able to organise and be discipline in his or her business area won't likely spend so much to the point of being in debts.

 

[Shigobad20201]

A business man and an entrepreneur must be discipline in his or her line of business, you should never spend more than your limit and always try avoiding the debt you cannot afford to pay back.

That is why I always say that discipline and orderliness is one of the best way to succeed in business. Someone who is able to organise and be discipline in his or her business area won't likely spend so much to the point of being in debts.

 

[Sotherefore]

A business man and an entrepreneur must be discipline in his or her line of business, you should never spend more than your limit and always try avoiding the debt you cannot afford to pay back.

Some of them generally don't understand that they won't be able to pay back this dept , they just believe that if they collected it to add up to their business that the business will be most successful
, but is rather unfortunate that the business are not succeeding even after they have added it up.

 

[Sincerem]

Bad debt is among one of the things that are likely to destroy most business. Giving out products on credit and when this money cannot be paid back it will result in bad debt because you may not likely take any legal action to get back the money. This usually drains business financially

 

[Shigobad20201]

Not being able to pay back a debt because the business you used the money in running is proving abortive can leased to a bad debt which might also lead to the closed down of the business if care is not taking into consideration.

 

[Kelly5]

To simply put it, when customers purchase goods or services from you on credit, and they have refused paying up at the stipulated time agreed before balancing your books, they fall into the category of what we call bad debts in a business enterprise.

 

[Shigobad20201]

To simply put it, when customers purchase goods or services from you on credit, and they have refused paying up at the stipulated time agreed before balancing your books, they fall into the category of what we call bad debts in a business enterprise.

Buying and selling of good and services and not being able to pay back are bad debt in business and also when you started your business with loan without paying back the loan.

 

[tyrim88]

I much hear about bad debts of the business. What is this term and how it is treated under business principles?

Bad debt is any money collected and meant for a particular business prospect and is put into operation and by reason of either market forces or mismanagemet it is not bringing in good returns.

 

[joy101]

Bad debts is money loaned out to that are not returned.
In the business context it could be goods given as credit not necessarily money and customer is unable to pay due to unavailability of funds.
It will not be written off as bad debt.

Borrowing to start up a business depending how big the business is I didn't say that borrowing money to start up a business is bad, but the problem is the time to pay back the money can be very difficult.

 

[Shigobad20201]

Borrowing to start up a business depending how big the business is I didn't say that borrowing money to start up a business is bad, but the problem is the time to pay back the money can be very difficult.

The largeness of the business will depend on whether to borrow for the business or to start with the little amount of money you have which might not be enough sometimes .