How do you do to avoid your business from indebtedness
- Thread starter Stardom22
- Start date
The only way to avoid bad debts is ensure that the business does not give credit except a situation where the buyer is credit worthy. Secondly, the buyer has a business that have investment bigger than the credit he collected.
It is often better to ensure that your debt is not overwhelming and it should be what you can really manage and you can also try as much as possible to avoid it.
Have a proper budget and keep a close eye on your cashflow. Check the background of your customers before offering credit terms. Take out an insurance policy to protect against credit risks.
Well, i think that when any kind of business gets in trouble it indicates many things before it gets totally bankrupt. The best thing would be to focus on those aspects and concentrate to make things much better.
You can savw the business from debt by not taking loan to manage the business.
- Thread starter
- #10
I can say that when businesses are about to collapse there is usually red flags and warnings that the business shows up. So immediately you spot that the business is about to collapse make sure you get a funds from external sources and make a boost. Most businesses have been surviving this way.
It is better to not be greedy and buy what you think you can afford.
