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

[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.

 

[Jimmie150]

Currently i am try to avoid bad debit in a particular business or else if not properly managed it might ruin the business which is not good. There are some companies out there that has so much of this debt.

 

[Akinwale701]

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?

the very best way to reduce bad debts is to enact a policy that will let all customers know that the company isn't selling on credit anymore. those who will stay will stay and those who will not will not, also you need to stop selling on credit and at the same time communicate your feelings with the customers

 

[Nurudeen]

The way i have been able to avoid bad debt in business is just by cutting off some staff that doesn't need to be in my business like that and monitoring the business closely so that I won't run at loss at the end of the day

 

[Sariana23]

In my country we apply different methods, the main one is not to give anything on credit, but if you still do, you must ask for a guarantee that is proportional to the cost of the product. In other cases a document guaranteed by the bank is signed, in the absence of payment the bank cancels the debt, deducting it from the client's account.

 

[Nicklas22]

You just have to be very positive and also state your business terms and conditions on your business documentation and also you should ensure you set some realistic credit limits

 

[shalom]

This is very true, having bad debts in businesses is very bad especially for start-ups. It is advisable to all business owners to devise a method of avoiding bad debts in their businesses by all means possible.

 

[zahidhussain]

Once you know the financial capacity of the business nothing should make you incure debt on the business. You wouldn't want to go beyond the capability of the business because if you do the the debt will set in and this not good for the sustainability of the business.

When a person start their own business he faces many
problems like bad debt.So you have a proper plan to set the buisness.some customers are buy everything on loan some people have not financial backup so sustain their buisness

 

[Nimra Saeed]

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 order to start a business ,we have to face a lot of difficulties. The best method is back up method for every business.

 

[Sanusi]

I think avoiding bad debt in business all depends on the owner of the business, the owner of the business needs to harness, manage, control, human resources well in other not to have any loss. Moroever he also need to have a good money management.

 

[Psalmsavatar]

Debt in any form is detrimental to the growth and survival of a business. The worst form is the bad debt. Debt can be avoided in a business by creating and maintaining a good business policy. Such policy could be a zero tolerance for service at credit and money-before-service policy.

 

[Husnainali]

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

 

[Tayfem]

You can avoid bad debt in business. Even if you want to get loan to start a business, you must be sure that the business is capable to swallow the amount you use to start the business and also give you left over.

 

[unhappy triad]

Pay attention to details. Had a good business plan. Ensure a good network communication between you and your customers. And ensure they are satisfied. Make projections and avoid unnecessary risks

 

[tyrim88]

One of the ways to avoid debt for a new start up is to reduce or totally eliminate unecessary borrowing to fund any sector of the business that the ruturn is not feasible.

 

[Good-Person]

Avoid taking loans when it comes to business. Taking loan is always a risk and if you suffer from loss, you will be in bad debt. Many people suffer from huge financial problems after taking a loan that they were not able to pay. Moreover, only give credit to reliable customers who you can trust.

 

[Dowenship]

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?

Debt? I would rather not do the business than to ask for loan or borrow money! For business I'm yet to start.
Quote of knowledge!
Ensure you don't have one stream of income! Ensure you make friends that are better than you mentally

 

[GoldenLady]

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?

Avoid bad debt by avoiding debt as much as possible; that's what I believe in.

If you find yourself really in need of the debt, it's best to make sure you have an exit strategy, i.e an asset you can use to pay back.

 

[kayode10]

Well I am very shrewd with the spending of my business fund. I mention that every morning that goes out is meant for acquiring assets less liability. the answer to bringing more cash flow into the business and help to sustain it. This is how I have been managing to prevent bad debt in the business.

 

[sam386150]

Yes in order to avoid bad debt in a business is for you to make sure you are focused a lot, keep records of all Leah given out to customers,keep your own business rules and regulation customs in the front of customers.