Solution to bad debt in small and medium scale businesses.

[Kayzzy3]

Bad debt is used to describe a situation where debtors can not pay back their loan or money for goods or services rendered to them in good fasen fingered as a culprit in pulling down small, medium and even large scale businesses in every part of the world.
If a small or medium scale business is hit by bad debt

 

[Nurudeen]

The best solution to bad debt is to sell ones property to pay the debt if it calls for it. Nobody or company will entertain the excuse that you can't pay for a loan you borrowed, you just have to find a possible means to pay off the money

 

[Adebayonle7]

There's no two way to debt other than avoiding it. But can a small business who wants to grow and expand avoid debt? If you're able to avoid external debt by not borrowing nor incurring short term and long term liabilities, can you get rid of the internal debts that might come? Will the business controllers be people of integrity? You need to consider and ensure all these are in good place.

 

[Tariq Shehzad]

There are number of solutions for dealing with bad debts but the best solution to bad debt is to sell ones property to pay the debt if it calls for it. Nobody or company will entertain the excuse that you can't pay for a loan you borrowed, you just have to find a possible means to pay off the money.

 

[Rimsha kanwal]

Bad debt is used to describe a situation where debtors can not pay back their loan or money for goods or services rendered to them in good fasen fingered as a culprit in pulling down small, medium and even large scale businesses in every part of the world.
If a small or medium scale business is hit by bad debt

Overdue payments can quickly become bad debt. ... We have tips, tools and solutions to back you. Request ... If you're a small to medium sized business looking to manage your business ...

 

[Goodday]

The first time to do to help minimize bad debts in small scale and medium scale businesses is always ensuring that the customer has a tangible collateral security that can cover the debt in case the customer is unable to pay the debt or loan.

 

[Highflyer]

Debt used properly is a tool for business growth. When debt gets out of hand, however, it can hinder business growth, make it hard to find financing, and make any financing you do obtain more expensive.
tips to protect your business from outstanding invoices

1. Put checks and balances in place. ...
2. Make upfront payments your policy. ...
3. Set your payment terms – and stick to them. ...
4. Offer incentives for early payers. ...
5. Up to date systems and processes. ...
6. Stay in touch. ...
7. Prevention is better than collection.

 

[Janita]

Small and medium-sized enterprises (SMEs) are the backbone of the Asian economy. They make up more than 96% of all Asian businesses that provide two out of three private sector jobs in the continent. Therefore, it is vitally important for the Asian economies' economic success that they have fully functioning support measures for SMEs

 

[Adexgrace]

The issue of debt this days is becoming more rampant even in business, using someone I know for example he borrowed money to start a business and at the end of the day he was unable to pay off and last he sold his property to pay off.

 

[Alexandoy]

Depending on the amount of the bad debt, the business can be given a restructured loan for a longer term payment maybe 2 or 3 years so that the bad debt can still be repaid. But no bank will give the restructured loan so it is the government bank that should provide that rescue package for the business to avoid going to bankruptcy. I think there was a government bank that has the program in the 1980s but unfortunately the program was cancelled when it was discovered that most of the restructured loans were fictitious.

 

[Ralphjoe]

The best option to combat the menace of bad debt for a small business is the use of credit score. Credit score is the method through which credit worthy companies or people are known. It work when companies or people that buys things on loan repays their loan on time their credit score is increased.

 

[kayode10]

The fast solution to the debt incurred by the small scale business is to find a way to raise capital. This can be done from friends and family. If there is angels club in your country, you can join them and approach them for financing you small scale business. Another way is to look for an asset you can sell off to raise capital for the debt relief.

 

[Trexxxy]

Indeed it is a precarious situation when you have debts hanging over your neck unable to repay. I think the best solution would be to find every possible means to repay the loan or better still forfeit the business and repay the loan, learn from your mistakes and move on.

 

[Mawome]

I think it's reasonable for the company or the business organization to give the borrower more time to pay back, then if he doesn't pay when the second chance elapse they will now look for amicable solution. They can confiscate one of his valuable property, to release it when he pays back.

 

[Sariana23]

When unpayable debts arise, it is too late for the company. You must solve the debt with the loss or sale of said business. But if you can avoid acquiring this debt. When the venture begins, it must have financial solvency and a fund for emergency cases. Unless you are a small food business and sustain on daily sales while saving to emerge.

 

[Afrinish]

The solution.of the bed habits of the most important thing solution of the soutible of the knowledge if the proper work of the suition of the face each and every time of the bed habits .the property of the bad habits of the begin of the every thing .

 

[Damismiling]

Bad debt is used to describe a situation where debtors can not pay back their loan or money for goods or services rendered to them in good fasen fingered as a culprit in pulling down small, medium and even large scale businesses in every part of the world.
If a small or medium scale business is hit by bad debt

If I may get your question right, you are saying as a small scale business how do you avoid bad debt, bad debt can not be totally avoided to it can be managed to a minimal rate, so what I will say, have a strong financial principles that discourages your client from getting things on credit, avoid family and friends when it comes to business, be watchful for red signals of bad debt

 

[WhiteHouse]

Set up balanced system and account

Make forthright installments your approach. ...

Set your installment terms – and stick to them. ...

Offer impetuses for early payers. ...

Exceptional frameworks and cycles. ...

Keep in contact. ...

Counteraction is superior to assortment. ...

Convey your solicitations speedily.

 

[Henrywrites]

Bad debt is used to describe a situation where debtors can not pay back their loan or money for goods or services rendered to them in good fasen fingered as a culprit in pulling down small, medium and even large scale businesses in every part of the world.
If a small or medium scale business is hit by bad debt

As a small business owner, it is better that you don't sell on credit to avoid folding very soon. This is because you don't even have the legal might to pursue such bad debt in court when things go south. I have a poultry business and selling on credit is something that I dare not do no matter how sweet the deal looks to me.

 

[Adetayo100]

Good debt is defined as money owed for things that can help build wealth or increase income over time, such as student loans, or a business loan. Bad debt refers to things like credit cards or other consumer debt that do little to improve your financial outcome.