What are bad debts of the business?

[Sariana23]

If we talk about business and as I have read, the debt is uncollectible when you give a product to a certain customer on credit and he does not cancel it. This amount is lost for multiple reasons that the customer may face and is lost to the company. That is why it is advisable to sell the product in exchange for something as a guarantee based on the price, in this way you will not lose money.

 

[ranaabubakar263]

A bad debt is a receivable that is now irrecoverable from that person who was supposed to pay the same. The reason for nonpayment by the debtors is that either they go bankrupt, have financial problems or collection by the creditors due to various reasons is not possible.

 

[Kehinde]

Bad debt is a type of debt, which is provided by the company to the creditor or the partner but later on, it becomes non-recoverable. Such that serves as a liability to the company as it does not get paid back by the creditor and possess a loss to the company or the firm.

 

[Richard92]

Bad debt are expense payed for not profit making, this can be repainting the office building, and also repair and maintenance of some office equipment. Bad debt always occur in every business environment.

 

[Nicklas22]

Bad debt in a business are expenses that a business incurs when you render services or one of your customers buys goods and hasn't pay for the goods or services rendered to him or her
you’re unable to collect the money. Essentially, this sum is lost and needs to be written off in your record book.
Bad debt occurs when you encounter a bad customer

 

[Taimoor Jutt]

Debt, loan or borrowing money is not bad at all. This is part of every business and even it is mandatory in our life to process. But when someone takes loan he should to return as early as possible, at least before due date which is dealt by them. When they don't do this then they have to take another loan to repay earlier one and then this process continue, i think this is called bad debt.

 

[Kingsley]

Bad debt are irrecoverable debt, this are monies that are lost to the outsiders. I.e consumers . This are items that cannot be recovered easily, maybe due to bankruptcy of the customer or even possibly death of the customer.

 

[Ralphjoe]

Bad debts of a business are loans owned to a business that are likely cannot be recovered. This is a very bad omen for most businesses that is eating deep into the revenue of many businesses. No business wants to have bad debts but they can't do without debts.

 

[Psalmsavatar]

I sourced my capital through different means. One from contribution. Two from personal savings. Three from friends. Four through cooperative society.

Post automatically merged: Feb 1, 2021

I sourced my capital through different means. One from contribution. Two from personal savings. Three from friends. Four through cooperative society.

 

[Olamide wealth]

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.

 

[Sucrelove]

Bad debt is when someone owes you for a long time and refused to pay back and also it can be when a customer buy goods on credit from your business hoping he or she will pay back but at the end nothing happened and you just decided to forget the money it is termed as bad debt

 

[Tinaconcept]

Bad debt are liability of the business formed by persons who purchased from the business or obtained services from the business on credit and has been unable to make the payment for a long period of time. Bad debt are mostly written off by the company.

 

[Rashid]

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 receive

 

[Alexandoy]

The meaning of bad debt is a borrowed amount that is not paid and most likely will not be paid anymore. When a friend borrows money from you and he dies then that is bad debt because it cannot be paid anymore. In business there is an item called bad debt with the same meaning. Bad debt is an accounting term which means losses to the company because you sold something that was not paid.

 

[Diamond07]

If your business incurs a bad debt it means one of your customers hasn’t paid for the service or product provided, and you’re unable to collect the money. Essentially, this sum is lost and needs to be written off in your books.
Failing to deal with frequent or high levels of bad debt can cause your business to decline, and suggests changes need to be made to credit control and credit management procedures

 

[Lyrrex]

A bad debt simply put is money owed to you by a customer, that you are unable to collect and have to write off which is bad for the financial state of a business.
Bad debt is mostly caused by extending goods or services on credit to customers who eventually don't pay back.

 

[eojo2401]

Bad debt is a situation where you couldn't recovered the debt owed you by your customers. it do happen in business environment but what matter most is how you manage bad debt. For example the death of a trade debtor can lead to bad debt. So there's no way a business owner will not experience bad debt issues, but you need to manage it properly so as not to send you back to square one.

 

[Tundeoguns1]

Bad debt by a business. It is a huge amount of loan borrowed by a company or firm without a way of refunding it. A company might be in debt due to alot of reasons like giving out credit to customer or it can also be caused by heavy loans by the company from any financial institutions. When a business is in a situation of bad debt it might lead to loss of customer, loss of employees, loss of investment then eventually bankruptcy.

 

[Onachukwu]

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.

 

[Papikarl]

Bad debt is money loaned to improve or expand a business but it never had any positive impact on the business, it's mostly caused by mismanagement or accidents as the case may be. It can be avoided by having a good business plan