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How can a company limit bad debts?

• Answer •

  • Filter your customers. Not all customers are good for your business.
  • Require up-front payments.
  • Set reasonable credit limits.
  • Provide clear payment terms and penalties.
  • lmprove your accounting.Implement strict collection procedures.
  • Use cloud-based software for debt collection.

Answer:

The best way of controlling bad debts is not to provide credits to everyone. As more amount of credit will be given to the people, the risk of bad debts will increase. The funds left should be used for the development of the company.

Explanation:

hope it helps :)

pls mark brainleist :P

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