Are Creditors an Asset or Liability?

Starmix · Jun 3, 2023

Creditors are partners in business, however, they also play havoc on the business if they tend to refuse to pay what they owed to the business owners. They are assets, but rather liabilities to the business. They are considered liabilities for they give a negative effect on the business's net worth. It will be a big disgrace on the part of the business owner if the creditors pay on delay or pay never. What must be done f they never pay, of course, they will be sanctioned for there is a memorandum of agreement set before the release of the cash borrowed or goods. Creditors must be controlled or the business owner chooses only creditors with good standing.

Those creditors considered an asset are those who bring money that costs the business centers to produce and distribute their products to the good creditors considered an asset to the business. What can you say guys?

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astutimeliana723 · Jun 3, 2023

Creditors who are not trustworthy when paying their debts are a disease that can endanger the sustainability of the company. So we as business owners need to be vigilant, and only provide loans to creditors who have a good reputation.

Starmix · Jun 3, 2023

That is true and you also experienced bad debtors in your business in the past. It is good to choose who to approve and disapprove. They will be a liability in our business. There is no credit in my milk tea business, even I pay it.

IB D · Jun 3, 2023

Creditors could be assets or liabilities depending on their disposition at the material time. If they pay on time, they are be very good assets because they help the business to sell out stock.

astutimeliana723 · Jun 3, 2023

Starmix said:
That is true and you also experienced bad debtors in your business in the past. It is good to choose who to approve and disapprove. They will be a liability in our business. There is no credit in my milk tea business, even I pay it.

That's right I agree with you. It's best if it's possible to avoid credit in a business that's also good, apply the rule "There are goods, there is money" as I apply right now. LOL

Starmix · Jun 3, 2023

That is so true, how nice if all credits are good assets to a company or business. They bring money thus making the business grow robust. Those, not good payors bring havoc to the company's ROI.

astutimeliana723 · Jun 3, 2023

Starmix said:
That is so true, how nice if all credits are good assets to a company or business. They bring money thus making the business grow robust. Those, not good payors bring havoc to the company's ROI.

Such was the hope. But human beings have different characters, some are trustworthy and always disciplined in paying on time, some underestimate debt. There are even people who don't want to be in debt, because they think debt is a disgrace to them.

Starmix · Jun 3, 2023

Creditors though they can pay, but they are just stubborn which is why they suffer because of this. Their bad record will bring them a bad reputation once apply credit to other businesses.

cherry123 · Jun 3, 2023

Those that owed a business are the liabilities of the business and the fact is that they can easily ruined the business as they are owing and helping to keep away the stock of the business

Heatman · Jun 3, 2023

Starmix said:
Creditors are partners in business, however, they also play havoc on the business if they tend to refuse to pay what they owed to the business owners. They are assets, but rather liabilities to the business. They are considered liabilities for they give a negative effect on the business's net worth. It will be a big disgrace on the part of the business owner if the creditors pay on delay or pay never. What must be done f they never pay, of course, they will be sanctioned for there is a memorandum of agreement set before the release of the cash borrowed or goods. Creditors must be controlled or the business owner chooses only creditors with good standing.

Those creditors considered an asset are those who bring money that costs the business centers to produce and distribute their products to the good creditors considered an asset to the business. What can you say guys?

.

If your creditors are the type that usually pays when they are supposed to pay, I believe that you can actually see them as an asset to your business.

Starmix · Jun 3, 2023

Heatman said:
If your creditors are the type that usually pays when they are supposed to pay, I believe that you can actually see them as an asset to your business.

That's true they're called an asset creditors. They always bring money to the business owner. It's great.

Niyi Briggs · Jun 3, 2023

Creditors can be assets or liabilities depending on the kind of persons that they are. They only become liabilities when they hold your money for a long time and tie down your business.

Starmix · Jun 3, 2023

That is right it's a disaster of the. creditors don't pay on time, the company's ROI will be affected. Bad creditors will never be granted credit again.

Springtime · Jun 3, 2023

Creditors can be an asset or liability of a business. Trustworthy creditors who always pay on time are assets whereas those who do not pay are obviously a liability. Companies must be vigilant when offering credits to customers.

Starmix · Jun 3, 2023

Bad creditors do not have a second chance. They're rooted on lies whereas good creditors bring amassing money to the business. They're good assets to a business.

eldavis · Jun 3, 2023

Personally i believe creditors are liabilities and if care is not taken, they could end up destroying the business or make it go under debt on the long run if they do not pay.

Starmix · Jun 3, 2023

That would possibly happen if the business owner won't pressure the creditors to pay. They're not good partners in business.

cherry123 · Jun 4, 2023

Trustworthy creditors can be an asset to a business who always pay on time. they can't be liabilities as they help to grow the business as the business needs them

Starmix · Jun 4, 2023

That is true, in business both business owners and customers need to build trust. Business is a sensitive matter. They need to uplift their morales.

cherry123 · Jun 4, 2023

Yeah everything that has to do with business should be of more asset than a liability so that it can be help the business to easily grow to it's standard

Are Creditors an Asset or Liability?

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