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

[abubakar3141]

Bad credit can be detrimental to your business, especially if it is frequent. Not being able to collect payments when you have a good or service provider can reduce your cash flow. And, it can negatively impact the bottom line of your business.

 

[Caali]

Reducing business debt means selling business assets, reducing staff, reducing indirect expenses (eg advertising) or even reducing stock purchases. These all have a negative effect on business revenue which may be greater than the cost of servicing a business debt.

 

[btaliat]

As a new business owner. Run away from forcing people to buy your goods. When you force them, they tend to buy on credit from you. And make sure you separate the families and friends from your business. These people at times want to be treated preferentially which is bad for a young business.

 

[Anymore]

To avoid bad debt in business the business manager should ensure to get involved with businesses that has less risk iinvestment, here the manager would always distant himself and the company from the business capital and makes should only not more that 60% of the profit is re invested as capital.

 

[Kunkun]

Bad debt is a cost that a business causes once the reimbursement of credit recently stretched out to a client is assessed to be uncollectible. Bad debt is a possibility that should be represented by all organizations who stretch out credit to clients, as there is consistently a danger that installment won't be gotten.

 

[Sotherefore]

I've been saying it a lot of times that it is not always advisable for people to get loan and start up any business of whatsoever because this will put you in a serious situation if you are not able to pay back the loan, I can never get the business with a loan in it.

 

[Has.an_shahid]

• Put checks and balances in place. ...
• Make upfront payments your policy. ...
• Set your payment terms – and stick to them. ...
• Offer incentives for early payers. ...
• Up to date systems and processes. ...
• Stay in touch. ...
• Prevention is better than collection. ...
• Send out your invoices promptly.

 

[Ayokex]

Knowing your limit and your financial capacity is the key in business. You don't have to copy other business way of operations. You can avoid bad debts in business if you set a boundary to your expense. Do not spend beyond the capacity of the business.

 

[adazeez1995]

Always take one step at a time. Font rush into the idea of borrowing more money all in the name of expansion without considering other factors like quick sales and marketing. Try as much as possible to avoid these bad debts. Even though you have to borrow, get the money from trusted friends and family members

 

[Ihtsham Raza]

How to avoid bad business debt. It's possible to reduce the risk of bad debt by setting up effective policies and procedures around credit management, and making sure strong internal control systems are in place. This applies to taking on new customers as well as with regard to your existing customer base.

 

[Clara]

This applies to taking on new customers as well as with regard to your existing customer base. It’s possible to reduce the risk of bad debt by setting up effective policies and procedures around credit management, and making sure strong internal control systems are in place.

 

[Fatima]

Avoiding bad debt in business is a function of foundational principles, be rest assured that the only way to avoid bad debt is to never give out loan or entertain debt's at all, or it should be given to only trusted custom With proper follow up

 

[Onachukwu]

Bad debt is an expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible. Bad debt is a contingency that must be accounted for by all businesses who extend credit to customers, as there is always a risk that payment will not be received.

 

[Erik4150]

The best way to avoid bad debt in business is to cut the cost of business where possible. Sometimes you spend so much money on your own business to extent that you get into debt, you should avoid that situation.

 

[Samuel77]

According to my own point of view as a business man you need to practice the law.pay before service this is the normal law which bans every business. But if you wishes to give a good customer goods on credit then you not have to trust that the customer

 

[Blessedsam60]

We have so many ways of reducing bad debt in businesses especially for start up. One of them is improvising the business financial needs by borrowing with a limit and repayment with a due date. This will actually help you to estimate your progress in minimizing dept owed.

 

[mubinadaddy]

Bad debt always happen in a business when family come into and buy wide product on a credit basis and when such is done to pay back the money it becomes and issues and when such continue the company will be at lost so business should be a business we should not involve plessure with family along with business. Bad debt can cause closure of business in an earlier stage.

 

[Highflyer]

Avoiding debt in business takes a lot of self discipline and determination because there will always be bills to settle. I avoid debt in business by ensuring that I only spend on the necessary things I need. I also avoid taking loans as much as possible.

 

[Seun4luv]

Credit check new customers. Set realistic credit limits. State your terms and conditions clearly on business documentation. Send invoices quickly. Find out whether customers operate a monthly payment run. Chase payment immediately a debt is overdue.

 

[Neeta313]

It is important for a new business owner to avoid bad debts as much as possible, because bad debt would only make your business stagnant, as a new business owner, you should be thinking of growing your business to a stage where it will standout and become a successful well-known business.