What are bad debts of the business?

[QalabDogar1906]

As a business owner there is nothing wrong in borrowing money to improve your business and that's called a good debt because you hope that when the business grows it can pay back the debt and even produce profit. Meanwhile, if you have a business that is still struggling and you take out of the money you're supposed to use to improve the business to buy property or assets then it is a bad debt.

Post automatically merged: Jan 31, 2021

As a business owner there is nothing wrong in borrowing money to improve your business and that's called a good debt because you hope that when the business grows it can pay back the debt and even produce profit. Meanwhile, if you have a business that is still struggling and you take out of the money you're supposed to use to improve the business to buy property or assets then it is a bad debt.

There are many bad debts of business that is you should not done your work with hard work which become the reason of you business failure that is you should do working hard and your business is grow up

 

[abubakar3141]

Debt can be considered "bad" when it has a negative effect on your credit score - when you borrow too much or when you use too much credit (a high credit ratio). Credit cards, especially high interest rates, are a common example.

 

[Trexxxy]

Bad debts are the leading cause of most business collapse. Bad debts simply put is a type of debt or loan you can pay back and it is hanging on your neck. Your inability to pay back makes it a bad debt.

 

[tyrim88]

Though the business terrain is associated with both good debt that contineously generate income for the business while a bad debt is any item that has been extended to a customer and the money has not been paid and most times it's irrecoverable,it can leads to the fall of the business.

 

[zahidhussain]

Bad debt is a type of loan that you can take from a bank to run the buisness but your buisness cannot run and difficult to return also bad debt is a loan that you can give to customers but he cannot return well

 

[gnasrullah53]

All kind of debits which you get from bank and you are not in position to return then these debits are very bad for any body or any business.because with the passage of time these debits are increased and you are just only in loss
You got just only kind of debits in which you are sure to be return at time

 

[Setho]

I have always maintained that in business sometimes it is crutial for your growth to borrow money but it shouldn't be just anyhow type of money. You should only borrow with low interest rates and one which you can pay back soon.

 

[Eodine]

Bad debts are simply the total sum of money that is being owed to the company by it's customers and has exceeded the time frame for collection.

 

[Ziki]

I feel bad debt is borrowing the kind of money you cannot pay back. This keeps a business in a reoccurring state of borrowing more money to settle debt.

 

[Setfragil]

Bad debts are very bad in businesses it is like a cancer, it can cause the death of any business untimely. Bad debts are credit facilities that were enjoyed by the customers over a period of time but default in their payments. If you want to have a good and successful business experience, you must avoid bad debts at all cost.

 

[Sincerem]

Loan taking to start up a business enters into bad debt if time is not taken. We shouldn't allow debt to ruin our business it makes it slow down even stop operation if it becomes too much.

 

[Kunkun]

Bad debts are the debts that don't improve the business in any way and usually a form of pleasure on the part of the business owner unlike good debts that are used to further increase the value of a business on the long run

 

[Senator]

Another way of looking at what bad debt is in a business is this also. When your customers make some purchase order from you and you had to transport this orders, if the goods gets spoiled before getting to them, you incur the lost, that enter as bad debts in your account books

 

[Sheyemanu]

Well, in reply to your question in the above post concerning what are bad debts for a business, in my personal opinion bad debt could be defined as when you take a loan for your business and things don't go as planned and you are unable to replay the loan

 

[Setho]

I do not entirely like the idea of taking loans to start a business unless its one that can yield you a high income and other sources of funded have failed you.

 

[Chibson]

I always advise people especially people who are new in business never to borrow money in order to start a business. A lot of people go into bad debt doing so.

 

[Suba]

I much hear about bad debts of the business. What is this term and how it is treated under business principles?

Bad debt in an accounting sense is often classified as doubtful accounts or unpaid debts, so in the end it is classified as a bad debt expense which will reduce Account Receivable.

 

[Josemendez]

I much hear about bad debts of the business. What is this term and how it is treated under business principles?

Bad debts ranges from borrowing money when there is no serious reason for borrowing to allowing people to buy goods on credit when the business is suffering.

 

[Setho]

Bad debts is one of the things that can bring a business down. Bad debts is giving out your products for a free or for lending and they do not pay for it.

 

[Jlife]

All new business that is starting up must understand that bad debt are one of the most leading actors of business failure, it is a situation in which people get goods and services from you without paying it back and you don't have any other option than to overlook it.