Coping with bad debtors in your business

[Carpon]

Bad debts are debts that cannot be retrieved and bad debtors are people that lead to bad debts.
Bad debt is very deragatory and can detoriate a business and affect it's stability.

So how can one be able to manage bad debts in business?

✓ Take note of Potential bad debtors: Get to know all your bad debtors and the cause of their lack of debt settlement. Make a list of such people.

✓ Avoid giving goods on credit to such people: After you have noted such people down, you must try and avoid giving them goods on credit. It may be hard at times especially if a good relationship exists between you, but you need to do this if you need your business to stand.

✓ Be careful while giving out goods on credit: Do not give out goods on credit to anyone without a crucial reason and confirmation of getting your money paid duly.

✓ Source for funds and put in place of the amount lost to bad debt if possible.

 

[Augusta]

Having debtors in the business in the first instance is our fault we need to do better as business owners and avoid giving goods on credit to people that are not creditworthy and will not pay. When you do this you would even think of having debts let alone trying to cope with the situation

The truth is that one need to try and avoid giving goods on credit. It may be hard at times especially if a good relationship exists between a customer and you, but you need to do this if you need your business to stand.just be mindful.