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

[Kamon c4]

Running into debt can be caused by a lot of things such as financial mismanagement, indiscipline, natural disasters or occurrences and a lot more. All of the aforementioned has a solution. Self discipline is the best way to avoid debt. You don’t have to quench all your desires. Get only your needs. There’s little or nothing that can be done to curb natural disasters. The only solution is this is insurance and savings

 

[Trojan8]

Bad Debt occurs to firms that allow for credit facilities in sales. One sure at of totally eliminating bad debt is by insisting on cash payments for services. While this might seem easy on the surface in actuality it is almost impossible for a firm to do this. I believe having an understanding of your customers would go a long way in reducing bad debt. You can actually see those that might be bad debts based on reputation.

 

[idhans]

The best 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.

small scale businesses and large scale businesses have all failed because of bad dept. This is a very important factor all businessmen should be able to look into. Always ensure that you conduct a proper background check of the people you are going to borrow money.

 

[kahsifnadeem]

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?

Experienced advisors can tell you how you can prevent from bad debit in your business because if you are going to invest in something you should first make a sketch about debit and profit to make this sketch you should take surveys and consult to some business advisors.

 

[GIFTMICHAEL]

Newly business and you have already started borrowing this to me is actually a wrong step. Every newly established business must stop or avoid borrowing money. To take loan is good but please don't make it a habit.

 

[Diamond07]

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?

Bad debts can ruin a flourishing business not to talk of a startup business. The best way to avoid bad debt is to not approve of it in the first place, do not sell your goods or products on credit.

 

[Divulgence]

Bad debt is the money owe by a debtor. Bad debt is a business killer if not well handled. I was able to reduce bad debt in my business by not selling goods on credit that will last for a longer time. I also make sure that I do thorough follow up. And also sell goods to known people

 

[Atiqurrehman]

Keep checks and balances in place. ...

Make your policy clear. ...

Set your payment terms - and stick to them. ...

Offer discounts for early payers. ...

The latest systems and processes. ...

stay in touch. ...

Better a poor horse than no horse at all. ...

Send your receipts immediately

 

[Mahnoor]

If your business incurs a bad debt it means one of your customers hasn’t paid for the service or product provided, and you’re unable to collect the money. Essentially, this sum is lost and needs to be written off in your books.

Failing to deal with frequent or high levels of bad debt can cause your business to decline, and suggests changes need to be made to credit control and credit management procedures.

 

[chommyluv]

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?

One can avoid bad debt..by making use of its available capital, don't borrow from any lender be it bank or individual to boast your business because no one knows what the future holds. for instance you take a loan or buy goods on credit to stock your shop and in the same week a fire accident occur...what will then be the person fate

 

[Kingsley]

It is unavoidable because we can't predict what will happen the next minute or the future. Anything can happen at anytime. So someone can promise to make some certain amount of payment at a later date and such person may end up having an accident or may even go bankrupt.

 

[Setfragil]

Bad debts is a serious menance in every business. To avoid bad debts you can offer discounts for timely payments of debts to customers. You can regularly check on your debtors by picking up your phone to call them or physical contact address visiting to remind them of their debts. The best way to avoid debts is by not selling without immediate payments.

 

[Alexandoy]

When I had my business we normally give credit arrangement to big customers. Upon the delivery of their order they have 30 days to pay. But sometimes the privilege of buying on credit is abused that the payment would be after 45 days or 60 days. We are choosy with customers so that new customers have to pay COD - cash on delivery otherwise we do not sell to them. After some months that they can prove their worth as a good customer then we give them the credit privilege.

 

[Blessingedidiong]

Bad debts is not good for a business but it is not easy to avoid bad debts. Do not give out credits and if at all credits must be given,make sure those given are those you are sure will pay back at the stipulated time given. Also try not to owe staff payment as this can in turn become bad debts for the business.

 

[Sotherefore]

I use a very simple strategy to overcome this and the strategy I am using to overcome this is that I do not get money from anyone to start up the business that I do not know even if I know the business I will still like to use my money to start up that business to be sure

Post automatically merged: Feb 10, 2021

I use a very simple strategy to overcome this and the strategy I am using to overcome this is that I do not get money from anyone to start up the business that I do not know even if I know the business I will still like to use my money to start up that business to be sure

 

[Henrywrites]

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?

Always do your best to avoid selling on credits. As a startup, many of your new customers will try to get what you are selling on credit, but such move should be restricted. I have noticed that selling via cash, even when you don't sell quickly, is better than selling many products on credits and looking for ways to recover such debts.

 

[Abigael]

I have never started any business but I think I have some ideas on how to avoid debt in business. One of them is avoiding loans as a source of capital for a new startup. It is best that you look for other sources such as your savings or income. Another way to avoid debt is ploghing back profits when you want to expand the business instead of taking a loan for that purpose.

Post automatically merged: Feb 10, 2021

I have never started any business but I think I have some ideas on how to avoid debt in business. One of them is avoiding loans as a source of capital for a new startup. It is best that you look for other sources such as your savings or income. Another way to avoid debt is ploghing back profits when you want to expand the business instead of taking a loan for that purpose.

 

[Mostee501]

Debt is one of those things that can creep up in a business at any time. In debt management even thriving businesses can fall if problem arises,increasing revenue,prioritize your debt,reduce costs,negotiating better terms and seek help.

 

[Victor001]

Business does not start on debt and should not run on debt, if you find comfort in giving out your products on debt,every tendency that your business will definitely crash. No matter how free you are with your customers, don't compromise sale in your business.

 

[Mawome]

Bro it's not that easy to avoid debt in business, have it in your mind that people will always own, I tell you, no matter how hard you try, no matter the standard you set for your business, those bad customers will still owe you, unless it's a super market where people pay with there cards