What are bad debts of the business?

[Ralphjoe]

By almost all Ramification of looking at things bad debt is bad for business. It signifies loss the moment it happens and that only few times it comes our good. Bad debt are debts owed to the business and written off by the business owner.

The bad debt of a business is very bad for a business as it will definitely reduce the expected revenues of a business as it is going to be losing debt that are being owned to it

 

[Bousine123]

Bad debts are also reffered to as the losses of a business. Some debts and losses thst cannot just be retrieved.

 

[Kubiat-Abasi]

Bad debt are those debts that you can't even account for. Most times, people get unnecessary loan from banks or from friends which is actually not needed. The most important thing is for you to be able to minimise your spending, improvise and try to accumulate profit.

 

[joy101]

Bad debt is a debt that own by your business that cannot be able to pay back in your business, debt is not really good in a business because is bring the business back.

 

[Heatman]

Bad debt are those debts that you can't even account for. Most times, people get unnecessary loan from banks or from friends which is actually not needed. The most important thing is for you to be able to minimise your spending, improvise and try to accumulate profit.

Seriously, there is no way any kind of debt helps any kind of business or even any individual personally because it keep dragging your business progress back.

 

[Toyoabasi]

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

Bad debts are said to be resources owed by a business which do not add value to the financial income. They are liabilities that are of no gain to the business.

 

[Godspower]

Bad debts of a business are debts that cannot be recovered from creditors again due to a number of reasons. Such debts have been there for a long duration before the business organization decides to write it off from it's accounting books.

 

[Mayox25]

Bad debt is money owed to you by those you have transacted business with which you are unable to recover. This is envisaged to happen in business that's why when preparing the accounts there are provisions for bad debt and subsequently they are usually written off.

 

[Heatman]

Bad debts are said to be resources owed by a business which do not add value to the financial income. They are liabilities that are of no gain to the business.

If you put it in a simple way, they are funds that you are supposed to pay back to the company or any individual that you borrowed money or boughtga goods and services from.

 

[Kaffyfolla]

Bad debt refers to loans or outstanding balances owed that are no longer deemed recoverable and must be written off. This expense is a cost of doing business with customers on credit, as there is always some default risk inherent with extending credit.

 

[Lens]

A bad debt is simply an unpaid loan. If the loan repayment period elapses and you are unable to pay due to non performing business, it would be recorded as bad debt.

 

[Sotherefore]

A bad debts are always a debts that you are not able to recover from the debtors.. in this case an individual may not have any other option than to abandon it and move on because it is considered as a loss.

 

[HayKay]

Bad debts are usually debts accrued by a business that cannot be recovered. Once you're being owed and there's virtually no way the person or company seeks to pay you back, then you categorize it under bad debts.
Or you took a wrong investment or purchase decision and it told badly on your accounts, it's termed bad debt.

 

[Justin]

When a company has bad debts, it means it is unable to collect its investment or money from sales. For example, a bank gives loan and when it cannot recover the loan, it is bad debt.

 

[kinqzbitz]

Well bad debts can definitely bring down any business and so one should be extremely careful when dealing or going into debts no matter how legit the loan is or not

 

[Joy123]

Bad debts are money owed to your business by a customer and has to be written off, it money that you can't get back. It is usually considered to be a loss to a company.

 

[Shigobad2020]

Bad debt are debt that cannot be retrieved , bad debt is sometimes the debt that someone close to you is owning you and you dont know how to ask for it, or its the debt you are owing your debtor.

 

[YERUS]

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

When you borrowed or loaned money for your business, and unfortunately your business did not yield much as you expected, to a point where you cannot repay the loan, that is a bad debt.
Bad debts have a way of contributing to the failure of a business.

 

[tyrim88]

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.

one thing about bad debt is that it has a way of bringing down the business,it will make the owner of the business to be very restless and this might if not properlly manage affect the business negativelly.

 

[Dagm1]

Simply explained, a bad debt is money owed to you by a customer that you are unable to collect and must write off, which is terrible for a company's financial situation.