Solution to bad debt in small and medium scale businesses.

[Judee201]

1. Offer top quality services.

Charity they say begins in our domain. The entity must be known to produce very top quality goods /services. There is a direct link between the quality of services and the percentage of debts that might end up becoming bad. When customers are not satisfied with the quality of work done, the natural response will be to withhold payment is a 'cold war' styled protest.

2. The organisation must have in place a step by step receivables management strategy. Clear time line course of actions must be in place to adequately track receivables as they fall due.

 

[GIFTMICHAEL]

Borrowing or collecting loan that you are unable to service or pay back is definitely going to shut down completely your business.
Bad debt is a problem to every small and medium scale business.
This is one of the problem of collecting loans.

 

[Heatman]

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

You can always find a way to inject more funds into the small business or medium scale business because it's the only way that you can save the business from dying. You can get loan to boost the business or enter into a new partnership to fund the business.

 

[Sanusi]

The best solution is to look for a way out whereby the small or medium scale business will make you earn money on a short term plan, so through that process you are minimizing your debt because when you make little money then you are reducing your debt like you won't be in Debt.

 

[Heatman]

The best solution is to look for a way out whereby the small or medium scale business will make you earn money on a short term plan, so through that process you are minimizing your debt because when you make little money then you are reducing your debt like you won't be in Debt.

Being in debt is never a good feeling because it will take your joy away from your, believe me when I tell you that because I have been there and knew exactly what it feels like to be in debt. I'm glad that I have found a way to get myself in good financial state now.

 

[Donolatunji]

Strengthening the framework that facilitates financial transactions, including rules, regulations and institutions for the development, registration and compliance of collateral, insolvency agreements and credit reporting tools, is one way of reducing funding barriers for SMEs.

 

[Jlife]

that is why a lot of people have been saying that it is not advisable to get a loan and start up a business you do not have an understanding about you should only try to start a business with your own personal saving with this if you lost the will not have anyone to hold you responsible.

 

[Chris]

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. ...
8. Send out your invoices promptly.

 

[Tanny]

To control bad debts in small and medium scale business one can have provision for bad debts ey aside and

 

[Donkiz]

Some businesses takes loan that they don't need simple because they have access to it, and when this money comes in it will be wasted since there was no provision for it. Some times what kills businesses is taking a loan to embark on a project without proper homework to determine if the project will be successful or not. And when that project fails, it usually incurs lots of debt for the business, and might drag the business down with it.

 

[Blessingedidiong]

Businesses cannot outrightly avoid bad debts but bad debts can be managed. When a business is hit with bad debts, the business should not collect a loan to settle the bad debt. That will be putting the business into more debts. One thing the business can do is cut down on expenses. Another is the business should not give out any good on credit. Selling on credit is the major cause of bad debts and it should be stopped.

 

[Damscooguns73]

Concerning solution to bad debts in small and medium scale businesses. Well , it is best advise for such business to find a way to curb,not entertain or minimize bad debts because it kills business faster than one can think. If you have a customer who wants to purchase a huge fee products on credit, the person should have a co

 

[Husnainali]

The problems faced by Nigerian small business managers are as follows: lack of finances in starting and growing a business, poor infrastructure, inadequate legislation, competition, lack of management skills; More problems are corruption and inflation.

 

[Atiqurrehman]

Small and medium enterprises are facing numerous challenges while ... Suspicious Receipts and Bad Debts, Management ... Solution Proposal for SMEs

Post automatically merged: Feb 10, 2021

Small and medium enterprises are facing numerous challenges while ... Suspicious Receipts and Bad Debts, Management ... Solution Proposal for SMEs

 

[Abdul Naveed]

Here are some common pitfalls.
Business intelligence.
Establishing and earning.
Building a digital presence
Resource investment.
Cheap is not always good

 

[Atiqurrehman]

Small and medium enterprises are facing numerous challenges while ... Suspicious Receipts and Bad Debts, Management ... Solution Proposal for SMEs

 

[KvngMurphy]

Often atimes, bad debt can significantly impact successful businesses, sometimes resulting in the business having to cease operating. With outstanding debt having a direct correlation to cash flow, it’s no surprise cash flow is the number one issue facing business today particularly SME’s.

Put checks and balances in place.
Credit reporting companies can provide a financial health check on your clients, be they a business or an individual, and should be mandatory in any onboarding strategy.

Make upfront payments your policy.
Small Business NSW recommends taking partial upfront payment. You can take this one step further and present a payment schedule on engagement – for example, 25% up front, 25% at a key marker in the project and 50% on completion.

Set your payment terms – and stick to them.
It’s key to always set your payment terms in writing with each client. This creates a clear understanding of the conditions of the relationship but it also protects your business – these terms should detail that any costs associated with recovering outstanding invoices fall squarely with the client.

 

[Jomarie05]

There's no two way to obligation other than escaping it. But can a minor business who wants to grow and enlarge avoid debt? If you're able to avoid outside debt by not borrowing nor sustaining short term and long term liabilities, can you get free of the interior debts that might come? Will the business controllers be people of honesty? You need to consider and guarantee all these are in decent place.

 

[Olubayo12]

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

In accounting terms, bad debts are called irrecoverable debts, they are debts that you do not expect to collections back from the customers due to their credit scores. Companies normally have funds in reverse called provisions for bad debts and doubtful debts

 

[Shahid]

Funding is a major problem with SMEs in Nigeria. However, the problem is not so much the sources of funds but the accessibility. Most of these enterprises are unable to access both short-term and long-term loans. Some of the factors limiting funds accessibility by the SMEs include the lack of adequate collaterals and credit information, stringent conditions set by financial institutions, and the cost of accessing funds.