Are Creditors an Asset or Liability?

[Starmix]

Those bad creditors are burdened by the company. They cannot have a second chance. Only those goods considered the assets of the company for they bring money.

 

[IB D]

I try as much as I can to pay my debts to business people in time. Sometimes, getting things on credit is unavoidable but the willingness to pay Is what makes a person a creditor that has conscience.

 

[Passiveearner]

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.

I think that in many cases, creditors could be an asset in the sense that if you offer credit payment option to buyers, then they might buy more or even buy products in bulk quantity.

 

[Starmix]

I think that in many cases, creditors could be an asset in the sense that if you offer credit payment option to buyers, then they might buy more or even buy products in bulk quantity.

These creditors are good assets to the business. They bring money to the business they owed and they will always be granted purchase through credit.

 

[Sophie]

Creditors as far as I am concerned are liabilities
I say this because they are the ones helping your business
On the other hand if you are a creditor then it's an asset

 

[Starmix]

Creditors can be both an asset and liability. If creditors don't pay the stocks purchase on time the return of investment of the company will be affected and those who pay on time are good assets for they bring money to the business.

 

[IB D]

It depends on the kind of creditor that a person is. Those ones that allow business credits to turn it bad debts are liabilities. I always advise firms to steer clear of debts completely.

 

[flower]

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

It is true! a business must be more of an asset because if it's a liability, then you are sure not to make decent amount of money out of such kind of business Enterprise.

 

[cherry123]

Yes business owners nedf to strive to get this. a business must be more of an asset than being a liability. A thriving business will earn the owner a high return

 

[relcap23]

Depending on the the nature of business. Creditors are a major component of the business that is why most credit companies are thriving. A business will not prosper if it will depend on cash transactions but the business owners must professionalize the business by property selecting your clients. Small businesses are not advised to entertain creditors because it will paralyze the working capital of the business, but big businesses should entertain the idea of considering credit accounts as this will improve the volume of sales.

 

[Starmix]

Big businesses have their own creditors affiliated to them for many years. they can easily purchase through credit and being good payors, they are always granted. They bring money to the business owners.

 

[Shavkat]

I think they initiate liability to people who were attempted to engage with this. I never tried to be in doing this credit. For the reason that I do not want to be in deep debt.

 

[Starmix]

Those who purchase through credit are big tine capitalists. After building goodwill with the business owner it's easier for them to transact business through installment. It's not good to do business to bad creditors. They're liability.