What is bad debt, and how do you deal with it?

What is bad debt, and how do you deal with it?

Bad debt is when a customer can’t or won’t pay you what they owe, leaving you with a loss. This affects your business’s financial health and cash flow. Here’s how bad debt happens and what you can do about it:

Causes of Bad Debt:

(Tip: Always use a loan calculator before availing one!)

Accounting for Bad Debt:

Recovery and Tax Implications:

Prevention Measures:

Cost of Bad Debt Insurance:

Bad debt can harm your business, but proactive measures like credit management and insurance can help mitigate risks and protect your cash flow.