Collecting Bad Debts

sinesses suffer from the issue of bad debtsbecause it brings them new customers and helps
(accounts receivable that will most likely remainsupport their business. Rather than try and
uncollectible and will be written off). These debts“kill them” and maybe get
appear as an expense on the company's incomenothing [because there may be other creditors]
statement, thus reducing net income and mostyou can work with them to grow their business
companies make a bad debt allowance since it isby encouraging new customers to go there.
unlikely that all of their debtors will pay them inAlways remember what the Roman playwright
full.and philosopher said ‘He that does good
• What if you came up with a way toto another does good also to himself.’
ensure that all your debtors do pay their debts?Copying and distributing this article
• What if there were some creativeOrmita provides free updates about the generic
ways in which you can ensure that you collectbenefits of barter to those interested in local
bad debts and save your money as well as thecurrency, community currency, countertrade,
debtor?reciprocal trade, barter exchange, time dollars,
More often than not a debtors does wish to payhours and other forms of community trade
back their debt but may lack the funds to do so.vehicles.
Chasing anyone through the legal system is bothYou may freely copy and distribute this article
time-consuming and costly and there are noprovided that you attribute the author and/ or
guarantees that you will get paid, especially if yousource as the Ormita Commerce Network.
are not the preferential creditor.About Ormita
If the a creditor can come up with someThe Ormita Commerce Network spans 5
alternate way to collect a debt then they will notcontinents, with direct representation in more than
just save themselves time and money but it will17 countries plus additional partnerships in a
also help maintain the relationship betweenfurther 59 countries. The business allows
businesses. Some creative and new ways tocompanies to exchange goods and services on a
collect bad debt are listed below:reciprocal trade arrangement in order to expand
• Encourage them to work on a paymenttheir reach, access new customers, improve their
plan: If the business that owes you a debt cannotbuying power, monetise excess or unsold capacity
pay all at a time, work out a payment plan withand improve profitability.
them. Formulate an easy plan that depends onSome of our Websites
their ability to pay. Getting payment in smallOrmita Commerce Network Australia –
amounts eventually is better then waiting foreverOrmita Commerce Network Canada –
for a large sum to be paid back that might neverOrmita Commerce Network India –
be paid.Ormita Commerce Network Mexico –
• Help sell their products for them andOrmita Commerce Network New Zealand
take a portion of the sale price: As you already–
have an established business and reputation youOrmita Commerce Network United Kingdom
can help your debtor to improve their business.–
Consider advertising their product or service toOrmita Commerce Network United States of
your customers. This way their sales will increaseAmerica (USA) –
and you can fix a part of sales as a payment onFor Licensee, Franchise and Partnership Enquiries
the debt.please visit :
• Take their products directly off them:Report this article
You can also consider taking their productsThis article is free for republishing
directly from them. For example, if your debtor isSource:
a furniture seller, collect their furniture in amountRepublish this article
for your debt and sell, or barter, it to get whatAsk a Question About this Article
you need.>> Galleria Lucchese--14 Dickens
• Get them to join a barter exchange:Miniatures.Need information made by, costs,
Encourage your debtor to join a barter orcarrying case where can they be purchased?
commerce network that will sell their product or>> Where do I find the dollar amount of
service for them and give you barter credits. YouSocial Security Tax receipts for a given year?
can then use these barter credits to buy things>> Enfield ,tower flintlock 1868- looking for
YOU need – just like cash.firing hammer for 1868 tower # 682. Joe C.,
These methods can save you money and save>> Az community property state
the debtor. It saves you collection fees and timeexemption laws ...
and saves the person who owes you money