There is no better way than for you to reduce the amount of credit debt you give to your customers. If they don't want to patronize you because of that then they should leave.
Solution to bad debt in small and medium scale businesses.
- Thread starter Kayzzy3
- Start date
I'm sure when you were writing your feasibility studies you assumed that there will be no provision for bad debt because the bank might not have granted your request for loan,so making provision for bad debt in a small scale business is a sure way of ruining the good thing you started for yourself
Certainly there certainly are actually variety of services for handling poor financial obligations however the very best service to poor financial obligation is actually to offer ones residential or commercial home to pay out the financial obligation if it requires it. No one or even business will certainly captivate the reason that you cannot spend for a lending you obtained, you simply need to discover a feasible implies to settle the cash.
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Check and balances. Try to improvise and stay out of debt. Debt is yardstick to the collapse of businesses.
There is a company named BFree in Nigeria but they operate in the whole continent, they help in paying loan.
If you have a loan that you cannot pay off at due course, they can helps you take an agreement with the company and you would pay off gradually till you complete your loan.
It is very helpful
If you have a loan that you cannot pay off at due course, they can helps you take an agreement with the company and you would pay off gradually till you complete your loan.
It is very helpful
Small bad loans are as a result of too much excesses, bad management, bad debt and many more. All this has to be dealt with first before you can avoid that and find out what is causing that avoid it
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I believe that avoiding loans is one of the best ways to avoid bad debt in any kind of business. You must have more than enough capital to start a small business. In case if the business fails, you can have enough financial back up to start a new one without taking loans.
The best way you can actually correct debt in your small business is that you should try as much as you can to cut down all expenses to the barest minimum..
I think the best way to settle bad debt as an organization is to sell the property of the organization and settle the debt
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Solution is ability to make more sales to pay back for the loans. You just have to intensify your marketing effort so that you can generate sales consistently. Then, you can use the profits to pay back the loans.
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As far as I'm concerned, there are no two ways about it when it comes to settling debts in your business than by cutting down drastically on your expenses.
This is a really big problem. I read of a report about how small loans are on the rise in a developing country. The one thing I discovered is to be principled right from the start.
Business needs to be business and it's for serious minded people.
Business needs to be business and it's for serious minded people.
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If you're into bad debt, you would have to think of a way to repay the debt you owe.
You can sell off your business to repay the debt or any other property you've got.
Or you can get help from friends and family.
You can sell off your business to repay the debt or any other property you've got.
Or you can get help from friends and family.
When bad debt been incurred, the only thing the business person thinks of is how to repay the debt.
And if there is no way out, such a person would have to lose his collateral or even give up something more.
And if there is no way out, such a person would have to lose his collateral or even give up something more.
The best thing for all business whether large, medium or small scale is to avoid debt. But when an entrepreneur has already found his/ her self in debt, he or she should sell company shares or his or her personal properties to clear off debt.
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This is just the plain truth and the easiest way to avoid these. Most business owners fall into these mess cause they are trying to please everyone. Set your standards right from the beginning, if they do not want to do business with you, let them go. Others would come.
It happy often. Some cases where people borrow and was unable to meet up with the repayment. Even at a Coperate level. So bad dept cannot be totally wiped off but can be addressed.
To avoid bad debt, a business owner must learn how to be firm and does not treat customers with preferential treatment. He should tell the buyers to buy what they can afford instead of selling on credit for them because if they don't pay, it will later crumble the bhsiness.
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The only way you can avoid bad debt in business is by stopping to sell on credits and sell only for cash. If you are selling for credit and if the buyer does not pay back it is bad debt.
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.
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