Running a business is hard work and staying financial astute, even harder. How can a business avoid getting into a spiral of bad debt?
Bad debt for a business could mean that a customer hasn’t paid for the product or services you’ve provided. This is money that will be simply written off in our financial books. When this occurs too many times, higher levels of debt accrue and business suffers. Bad debt can have a number of negative impacts on a business, such as :
The best way to avoid this kind of debt situation is to not let it build up in the first place. Here are some steps in preventing bad debt: