Recently I started a poultry farm, I don't think I would allow bad debt in my business, when ever someone come to buy my birds I would explain to him that I don't do bad debt, and so if they want to buy from me, they should do a straight business.
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First and foremost, you need to find out why you have bad debt. Once you know the proper reasons for bad debt, you can easily address the issue. One of the main reason to have a bad debt in a business is related to selling on credits, a lot of businesses sell on credit in order to attract customers, and later they fail to collect the payment.
First and foremost, you need to find out why you have bad debt. Once you know the proper reasons for bad debt, you can easily address the issue. One of the main reason to have a bad debt in a business is related to selling on credits, a lot of businesses sell on credit in order to attract customers, and later they fail to collect the payment.
Some people expect that there be incoming funds on due date which doesn't happen in half of the cases and a person gets debt increased which could lead to legal problems like getting arrested by the police for example.This is the main issue of having a bad debt. When you are selling on credit and not following it up, you may end up discovering that those who bought from you may be unwilling to pay. So, it is important to have a good ground for selling on credit and only sell to those that are credit worthy.
As a newly business,to avoid unnecessary debt,I must make sure I monitor the business very well I must reduce some of the interaction between me and those I know the can not provide meaningful things in to my business.