February 22, 2019  
 
  Articles for Entrepreneurs  
 

Bad Debt

 

 
Gaebler.com is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Definition of Bad Debt

Bad Debt is the business term for debts owed to a business that are determined to be uncollectible.
(Definition continues below)

As a small business owner, bad debt expenses are difficult to swallow. In simple terms, money that is owed to you is not repaid. In some cases, a single bad debt can transform a profitable business into a money loser.

Bad Debt References On This Site

These Gaebler.com articles mention this glossary term:

  • Writing Off Bad Debts - But since you live in the real world, you can take comfort in knowing that at least you can take a tax deduction for bad debts...
  • Balance Sheet Interpretation Part IV: Current Assets - If this is the case, you will see an entry called "allowance for bad debt" besides the accounts receivable entry. Sometimes, a business will...
  • Attorney Letter Demanding Payment - But do letters from attorneys really work? Attorney letters demanding payment can be an effective tool for recouping bad debts. By sending a collection letter on your attorney's...
  • Factoring Receivables - The Basics - This translates into an overall reduction in the amount of bad debts and fewer headaches for your business...
  • Obtaining Funding From a Venture Capitalist - Here are the important documents investors review, according to advice by experts David and Laura Gladstone: Audited financial statements since inception Income statements, balance sheets, cash flow statements Records of all changes in equity position Accounting methods and practices Company-prepared monthly or quarterly statements A three-year budget and financial projections A complete and current business plan Accounts receivable aging and accounts payable aging Product or service pricing plans and policies Revenue and gross margins by product or service Extraordinary income or expense details Explanation of any material write-downs or write-offs A summary of all bad debt experiences...
  • How to Collect Business Debts - You can have your bad debt recorded on the scumbag’s credit record. Justice may...
  • How to Embezzle Money - After depositing a check from a customer in his or her personal account, the embezzler/accountant may record the receivable as bad debt, as if it had never been paid...
  • Factoring Receivables - The Basics - This translates into an overall reduction in the amount of bad debts and fewer headaches for your business...
  • How to Embezzle Money - After depositing a check from a customer in his or her personal account, the embezzler/accountant may record the receivable as bad debt, as if it had never been paid...
  • Writing Off Bad Debts - But since you live in the real world, you can take comfort in knowing that at least you can take a tax deduction for bad debts...
  • Balance Sheet Interpretation Part IV: Current Assets - If this is the case, you will see an entry called "allowance for bad debt" besides the accounts receivable entry. Sometimes, a business will...
  • Obtaining Funding From a Venture Capitalist - Here are the important documents investors review, according to advice by experts David and Laura Gladstone: Audited financial statements since inception Income statements, balance sheets, cash flow statements Records of all changes in equity position Accounting methods and practices Company-prepared monthly or quarterly statements A three-year budget and financial projections A complete and current business plan Accounts receivable aging and accounts payable aging Product or service pricing plans and policies Revenue and gross margins by product or service Extraordinary income or expense details Explanation of any material write-downs or write-offs A summary of all bad debt experiences...
  • Attorney Letter Demanding Payment - But do letters from attorneys really work? Attorney letters demanding payment can be an effective tool for recouping bad debts. By sending a collection letter on your attorney's...
  • How to Collect Business Debts - You can have your bad debt recorded on the scumbag’s credit record. Justice may...

 

 

 

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