❓ASK What are bad debts of the business?

CeeJase

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I much hear about bad debts of the business. What is this term and how it is treated under business principles?
Getting into unnecessary spending is something that should be avoided by all cost especially in a new business because it is going to drag your business into a serious bad debt that you can be able to pay off.
 

greenie

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an entrepreneur there isn't anything incorrectly in getting cash to improve your business and that is known as a decent obligation since you trust that when the business develops it can take care of the obligation and even produce benefit. In the interim, on the off chance that you have a business that is as yet battling and you remove from the cash you should use to improve the business to purchase property or resources then it is an awful obligation.
 

Sotherefore

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When someone is not able to pay you the dept he or she has collected from you then obviously that is a bad debt, also a situation in which you are not able to pay someone the dept you have collected it could also be a bad debt.. it is always on
Two side.
 

Shigobad2020

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Non challant and unnecessary spending of the business fund most of the time leads the company on the verge of debt and could also collapse the business, so it should be avoided at all cost.
Getting into unnecessary spending is something that should be avoided by all cost especially in a new business because it is going to drag your business into a serious bad debt that you can be able to pay off.
 

Sotherefore

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Non challant and unnecessary spending of the business fund most of the time leads the company on the verge of debt and could also collapse the business, so it should be avoided at all cost.
That is why I always say that discipline and orderliness is one of the best way to succeed in business. Someone who is able to organise and be discipline in his or her business area won't likely spend so much to the point of being in debts.
 

Shigobad2020

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A business man and an entrepreneur must be discipline in his or her line of business, you should never spend more than your limit and always try avoiding the debt you cannot afford to pay back.
That is why I always say that discipline and orderliness is one of the best way to succeed in business. Someone who is able to organise and be discipline in his or her business area won't likely spend so much to the point of being in debts.
 

Sotherefore

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A business man and an entrepreneur must be discipline in his or her line of business, you should never spend more than your limit and always try avoiding the debt you cannot afford to pay back.
Some of them generally don't understand that they won't be able to pay back this dept , they just believe that if they collected it to add up to their business that the business will be most successful
, but is rather unfortunate that the business are not succeeding even after they have added it up.
 

Sincerem

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Bad debt is among one of the things that are likely to destroy most business. Giving out products on credit and when this money cannot be paid back it will result in bad debt because you may not likely take any legal action to get back the money. This usually drains business financially
 

Shigobad2020

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Not being able to pay back a debt because the business you used the money in running is proving abortive can leased to a bad debt which might also lead to the closed down of the business if care is not taking into consideration.
 

Kelly5

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To simply put it, when customers purchase goods or services from you on credit, and they have refused paying up at the stipulated time agreed before balancing your books, they fall into the category of what we call bad debts in a business enterprise.
 
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