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

[Bkoks]

That means we have bad debts and good debts according to this question. I'm very sure the good debt is till endurable but the bad debts . I'll advise that we don't go into what is more than us .we stick to what we can afford and do our business admist the resources we can gather.

 

[Ryeetar]

Firstly some entrepreneurs don't see the need of having a separate personal account and a business account and that is very bad for a business, they just go about spending money on trial things without caution. As an entrepreneur to avoid going into debt you need to avoid spending your capital and even profit, rather put your profit back into the business so it can expand

 

[Blue house]

Bad debt in business is not good for business at all, although you can't avoid debt in business but you can avoid bad debt.
To avoid bad debt in any forms or types of business, never spend beyond your earning and make sure there is good accountability in your business, always keep record of everything you do.

 

[Dubai]

I have not had bad debt in business although I have been scammed on one before. I would sincerely love to hear from peoples experience so as not to fall in an ugly situation of it. How does one avoid it completely?

 

[maventiger]

Debt is one thing I have always try to shy from as an individual.
Permit me to tag it a 'wild setback'. Debt can be a setback in a business when you are not able to meet the requirements agreed upon initially and then the necessary action are been carried out. These could have negative effect and setback to your business.
A way to avoid debt in a business is that, try to have or gather enough capital before starting a business.

@Efficient5713 I think we belong to the same school of thought. The cost of servicing debts should scare one away from taking loans especially from financial institutions like deposit money bank. The burden placed on the borrower is huge.

 

[Sheyemanu]

Well I would personally say that, 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. And advice for everyone is to get financial education before going into business

 

[Efficient5713]

@Efficient5713 I think we belong to the same school of thought. The cost of servicing debts should scare one away from taking loans especially from financial institutions like deposit money bank. The burden placed on the borrower is huge.

Yea,
That should be the main reason why any one with his or her thinking cap right out on his or her head should reason and shy away from debt.
Because, what you will pay will be more than what you received in most cases.

 

[Blessing76]

How to avoid bad debt in a business is very possible but as the English man would say prevention is better than cure so it is better not to be involved in any debt than being in debt and not be able to pay for the debt and end up being disgraced

 

[Irfan Aslam]

Could really I admit prevent bad debt in the business or I say resource management in the business, because there are a lot who believe that, if they don't go into borrowing for the promotion of a business or loans there, there's no risk of business or product moving forward.
If you are committed to what you do, you can rejoice in it, I bet, things will definitely come to your place.

 

[Tinaconcept]

Recovery of debt is a very difficult issue to handle and if its coupled with sentiment maybe a relation then it becomes irrecoverable a times but that not with standing businesses still needs debt at some certain stage is very important in business because in some point you will need their promotion to others

 

[Samuel77]

It is all about understanding and also you must be vigilant with your customers, customers who are not trusted should not be giving goods on credit. only give out goods to customers who are trusted and are liable to pay back

 

[Cash%]

To avoid bad debt by the customer. You need to take a legal dimension on your money when leading ,like you can taje the case to court , in case he or she refuses to pay

 

[Nomad]

I could not avoid bad debt, therefore I failed. Bad debt can not only your business incur financial loss but can also cause you business to go bankrupt. You should be very careful about bad debt.

 

[Godleads1]

I would advise that a start up business should try as much as possible to allow customers know their stand on certain things. This is also applicable to family members. Start up business must have created a platform for themselves, where customers would be able to speak of as a business custom.

Post automatically merged: Apr 16, 2021

I would advise that a start up business should try as much as possible to allow customers know their stand on certain things. This is also applicable to family members. Start up business must have created a platform for themselves, where customers would be able to speak of as a business custom.

 

[Jumoke12]

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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 best way to reduce bad debts is to avoid selling on credits. Also, set your rules and regulations very strictly for your customers to avoid the repeat of such.

 

[Kelly5]

I have a fixed percentage I permit for borrowing and buying on credits. I don't pass or go beyond that limit because I don't want to incure too much bad debts

 

[Psalmseen]

Bad debt simply means irrecoverable debt.. Bad debt can't be evaded.. There'll always be some set of people that will owe you in a business and the money will no longer be recovered probably due to death or other reasons

 

[Adventurer]

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?

I have a strict no credit policy, this way my customers know and don't bother asking for credit because In the past we have lost a lot of money due to bad debt.

 

[Jesuyemi 08]

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 debt is the one accrued in the name of a business that eventually pose a serious threat on the survival of a business. The best way to avoid it is by not taking loans that can affect the financial productivity of the business.

 

[Bookwormlux]

In order to reduce debt, most business owners need to be honest with themselves. You need to start small and then grow. Most want to start from the top that's why they take loans.