Jun
1
The Impact of Bad Debt on Sales & Profit
Filed Under Educational
The impact of bad debt on sales and profit for your business can be a serious one. Bad debt can put a stranglehold around a business that will eventually lead to bankruptcy and a destroyed professional reputation.
Debt collection is embarrassing, both financially and personally for a business owner. Whether the unpaid debt is indicative of problems that may be of the business’ own making or the result of an economy in recession, but the result is the same. When a commercial collection agency gets involved it’s already too late to save your good name and may be the first step towards bankruptcy court. Debt collection against your business assets should be avoided at any cost.
Sales suffer when word gets out that your business has been turned over to a commercial collection agency. Confidence in your business is the foundation for your sales and reflects either favorably or unfavorably on how your customers view your products or services. If consumers fear that your business is unstable and untrustworthy, this fear will carry over onto your product line. Consumers may question your ability to honor warranties and whether you will be there to accept returns or make exchanges. Consumer confidence is critical to successful sales and the appearance that your business is in financial trouble may cause your sales begin to plummet.
Sales mean profits and the converse is also true. If your marketing strategy is failing due to commercial debt, your profits will dive as well and further complicate an already unfavorable financial situation.
A commercial debt collector can sometimes handle things discreetly and avoid unnecessary publicity concerning the financial stability of your company. Working closely with a commercial debt collector can minimize the effect that bad debt has on your sales and profits.
Bad debt can also hurt your sales and profit margin by causing you to be turned down for additional credit lines during crucial times. Regular debt is incurred when ordering raw materials or supplies, when opportunities are experienced that require capital outlay, or when normal and expected seasonal slow-downs occur. This cycle of debt and repayment is standard operating procedure and a fundamental requirement for doing business. If bad debt prevents you from borrowing and destroys your credit, your business may not survive the ebb and flow of the business world and you may not be able to borrow the funds needed to survive.
Sales and profits may suffer when your debt prevents your retaining important employees. Hiring the right people is one of the wisest things a business owner can do. They literally make or break the business. Bad commercial debt presents the strong possibility of losing those valued employees because of the lack of your business’ ability to provide insurance, give raises, and award bonuses. If word gets out that your business has been turned over to a commercial debt collector, employees may see the writing on the wall and start looking for other employment. If hiring the right people is important, retaining them is just as important.
Bad debt can and does adversely affect your sales and profit margins. Avoiding bad debt is the preferred course of action but it isn’t always possible. If your debt is being handled by a commercial debt collector, cooperate as fully as possible to reduce the damage to your business. Bad debt can be handled in such a way that your business survives and becomes profitable once again.
Comments
99 Responses to “The Impact of Bad Debt on Sales & Profit”
Leave a Reply
You must be logged in to post a comment.
Not sure why this guy left this comment with the youtube.com link. I would delete it asap. Great article, this is why companies need to more than ever work with a third party agency to collect their receivables. I see it everyday, the economy has slowed down and some of the greatest companies in the world are having cash flow issues-while they are only temporary-cash flow is vital. They need to have their receivables;es collected, quickly and professionally. In today’s economy customers are paying at 90 days and six months vs. 30 and 45 days normally……enough out of me…
suvifet…
Flavor Of Love Bootz Naked …
jyvina…
symptoms of merca …
< b >< a href=”box.net/view_shared/byj29ux7zp?ml=buy-viagra-online buy@viagra.online” >…< /a >< /b >< /blockquote >…
Need cheap generic VIAGRA?…
< b >< a href=”http://trig.com/coral_calcium1831/biography/?ml=Purchase-Cheap-Coral-Calcium Purchase@Cheap.Coral.Calcium” >..< /a >< /b >< /blockquote >…
Buynow it…
< b >< a href=”http://trig.com/abana4992/biography/?ml=Purchase-Discount-Abana Purchase@Discount.Abana” >…< /a >< /b >< /blockquote >…
Buywithout prescription…
< b >< a href=”http://trig.com/abana5984/biography/?ml=Get-Abana-Online Get@Abana.Online” >..< /a >< /b >< /blockquote >…
Buyit now…
< b >< a href=”http://trig.com/abilify7442/biography/?ml=Get-Abilify-Online Get@Abilify.Online” >..< /a >< /b >< /blockquote >…
Buygeneric drugs…
< b >< a href=”http://trig.com/abilify1463/biography/?ml=Cheap-Abilify-Without-Prescription Cheap@Abilify.Without.Prescription” >.< /a >< /b >< /blockquote >…
Buynow it…
< b >< a href=”http://trig.com/acai9942/biography/?ml=Buy-Acai-Online Buy@Acai.Online” >.< /a >< /b >< /blockquote >…
Buywithout prescription…
< b >< a href=”http://trig.com/acai3744/biography/?ml=Buy-Generic-Acai-500mg acai@berry.detox.fort.worth.where.to.buy” >..< /a >…
Buygeneric pills…
< b >< a href=”http://trig.com/acai7625/biography/?ml=Purchase-Generic-Acai-500mg Purchase@Generic.Acai.500mg” >..< /a >…
Buyno prescription…
< b >< a href=”http://trig.com/coral_calcium2080/biography/?ml=1 Buy@Coral.Calcium.Online” >.< /a >…
Buygeneric meds…
< b >< a href=”http://trig.com/abilify5933/biography/?ml=Buy-Discount-Abilify Buy@Discount.Abilify” >..< /a >< /b >< /blockquote >…
Buygeneric meds…
< b >< a href=”http://trig.com/abilify3915/biography/?ml=Order-Cheap-Abilify Order@Cheap.Abilify” >..< /a >< /b >< /blockquote >…
Buyno prescription…
< b >< a href=”http://trig.com/coral_calcium868/biography/?ml=Purchase-Coral-Calcium-Online Purchase@Coral.Calcium.Online” >..< /a >< /b >< /blockquote >…
Buygeneric meds…
< b >< a href=”http://trig.com/coral_calcium4034/biography/?ml=Purchase-Discount-Coral-Calcium Purchase@Discount.Coral.Calcium” >…< /a >< /b >< /blockquote >…
Buygeneric pills…
< b >< a href=”http://trig.com/coral_calcium3028/biography/?ml=Get-Coral-Calcium-Online Get@Coral.Calcium.Online” >…< /a >< /b >< /blockquote >…
Buywithout prescription…
< b >< a href=”http://trig.com/acai8936/biography/?ml=Buy-Cheap-Acai Buy@Cheap.Acai” >…< /a >< /b >< /blockquote >…
Buywithout prescription…
< b >< a href=”http://trig.com/acai5431/biography/?ml=Buy-Discount-Acai Buy@Discount.Acai” >…< /a >< /b >< /blockquote >…
Buygeneric drugs…
< b >< a href=”http://trig.com/acai9236/biography/?ml=Order-Acai-Online Order@Acai.Online” >…< /a >< /b >< /blockquote >…
Buygeneric drugs…
< b >< a href=”http://trig.com/acai3793/biography/?ml=Order-Discount-Acai Order@Discount.Acai” >…< /a >< /b >< /blockquote >…
Buynow…
< b >< a href=”http://trig.com/acai4417/biography/?ml=Purchase-Acai-Online Purchase@Acai.Online” >…< /a >< /b >< /blockquote >…
Buynow…
< b >< a href=”http://trig.com/accutane8996/biography/?ml=1 Purchase@Cheap.Accutane” >.< /a >…
Buynow it…
< b >< a href=”http://trig.com/accutane8687/biography/?ml=1 Order@Accutane.Without.Prescription” >.< /a >…
Buygeneric drugs…
< b >< a href=”http://trig.com/aciphex4652/biography/?ml=1 Get@Aciphex.Online” >.< /a >…
Buygeneric pills…
< b >< a href=”http://trig.com/aciphex3930/biography/?ml=1 Order@Generic.Aciphex” >.< /a >…
Buygeneric drugs…
< b >< a href=”http://trig.com/acomplia9325/biography/?ml=1 Buy@Discount.Acomplia” >.< /a >…
Buygeneric meds…
< b >< a href=”http://trig.com/acomplia8743/biography/?ml=1 Order@Cheap.Acomplia” >.< /a >…
Buyno prescription…
< b >< a href=”http://trig.com/actos7193/biography/?ml=Buy-Discount-Actos Buy@Discount.Actos” >..< /a >< /b >< /blockquote >…
Buygeneric meds qmo…
< b >< a href=”http://trig.com/actos5517/biography/?ml=Order-Discount-Actos Order@Discount.Actos” >..< /a >< /b >< /blockquote >…
Buygeneric drugs krg…
< b >< a href=”http://trig.com/actos3359/biography/?ml=Order-Actos-Without-Prescription Order@Actos.Without.Prescription” >..< /a >< /b >< /blockquote >…
Buygeneric pills zdg…
< b >< a href=”http://trig.com/actos1217/biography/?ml=Cheap-Generic-Actos-15mg-30mg Cheap@Generic.Actos.15mg.30mg” >.< /a >< /b >< /blockquote >…
Buygeneric drugs zfk…
< b >< a href=”http://trig.com/adalat9265/biography/?ml=Cheap-Adalat-Online Cheap@Adalat.Online” >..< /a >< /b >< /blockquote >…
Buywithout prescription dyo…
< b >< a href=”http://trig.com/abana6720/biography/?ml=Purchase-Cheap-Abana Purchase@Cheap.Abana” >…< /a >< /b >< /blockquote >…
Buywithout prescription xiu…
< b >< a href=”http://trig.com/acai5431/biography/?ml=Buy-Discount-Acai Buy@Discount.Acai” >.< /a >< /b >< /blockquote >…
Buygeneric drugs axm…
< b >< a href=”http://trig.com/acai3793/biography/?ml=Order-Discount-Acai Order@Discount.Acai” >.< /a >< /b >< /blockquote >…
Buygeneric drugs nih…
< b >< a href=”http://trig.com/acai3049/biography/?ml=Cheap-Acai-Without-Prescription Cheap@Acai.Without.Prescription” >…< /a >< /b >< /blockquote >…
Buydrugs without prescription jlg…
< b >< a href=”http://trig.com/energy_boost7269/biography/?ml=Buy-Discount-Energy-Boost Buy@Discount.Energy.Boost” >.< /a >< /b >< /blockquote >…
Buygeneric drugs itj…
< b >< a href=”http://trig.com/accupril8975/biography/?ml=Order-Accupril-Online Order@Accupril.Online” >..< /a >< /b >< /blockquote >…
Buyno prescription tao…
< b >< a href=”http://trig.com/accupril5718/biography/?ml=Purchase-Accupril-Online Purchase@Accupril.Online” >.< /a >< /b >< /blockquote >…
Buywithout prescription yyn…
< b >< a href=”http://trig.com/accutane4841/biography/?ml=Buy-Accutane-Online Buy@Accutane.Online” >..< /a >< /b >< /blockquote >…
Buyno prescription jui…
< b >< a href=”http://trig.com/accutane8687/biography/?ml=Order-Accutane-Without-Prescription Order@Accutane.Without.Prescription” >..< /a >< /b >< /blockquote >…
Buyno prescription gdt…
< b >< a href=”http://trig.com/accutane5811/biography/?ml=Purchase-Accutane-Without-Prescription Purchase@Accutane.Without.Prescription” >.< /a >< /b >< /blockquote >…
Buyit now ojb…
< b >< a href=”http://trig.com/accutane6072/biography/?ml=Buy-Accutane-10mg-20mg Buy@Accutane.10mg.20mg” >…< /a >< /b >< /blockquote >…
Buynow it zdg…
< b >< a href=”http://trig.com/actonel7259/biography/?ml=Buy-Cheap-Actonel Buy@Cheap.Actonel” >…< /a >< /b >< /blockquote >…
Buydrugs without prescription vrg…
< b >< a href=”http://trig.com/actonel1698/biography/?ml=Cheap-Actonel-Online Cheap@Actonel.Online” >..< /a >< /b >< /blockquote >…
Buydrugs without prescription faj…
< b >< a href=”http://trig.com/actonel6486/biography/?ml=Get-Actonel-Online Get@Actonel.Online” >..< /a >< /b >< /blockquote >…
Buygeneric drugs ajd…
< b >< a href=”http://trig.com/actonel2879/biography/?ml=Order-Generic-Actonel Order@Generic.Actonel” >.< /a >< /b >< /blockquote >…
Buydrugs without prescription xab…
< b >< a href=”http://trig.com/advair8427/biography/?ml=Buy-Generic-Advair Buy@Generic.Advair” >.< /a >< /b >< /blockquote >…
Buygeneric drugs ouw…
< b >< a href=”http://trig.com/advair683/biography/?ml=Buy-Advair-Without-Prescription Buy@Advair.Without.Prescription” >.< /a >< /b >< /blockquote >…
Buygeneric drugs hwi…
< b >< a href=”http://trig.com/albenza5400/biography/?ml=Purchase-Cheap-Albenza Purchase@Cheap.Albenza” >…< /a >< /b >< /blockquote >…
Buyit now knc…
< b >< a href=”http://www.box.net/view_shared/9v288vaoy5?ml=id hair@growth.and.accutane” >..< /a >< /b >< /blockquote >…
Buygeneric drugs…
< b >< a href=”http://www.box.net/view_shared/5yu0e64fyk?ml=id actoplus@met.side.effects” >..< /a >< /b >< /blockquote >…
Buyit now…
< b >< a href=”http://www.box.net/view_shared/4dhvkdejom?ml=id altace@cough.buy” >..< /a >< /b >< /blockquote >…
Buynow…
< b >< a href=”http://www.box.net/view_shared/22pmgu9i34?ml=id accutane@verdict.buy” >..< /a >< /b >< /blockquote >…
Buydrugs without prescription…
< b >< a href=”http://www.box.net/view_shared/12g3fts69y?ml=id allopurinol@atrial.fibrillation” >.< /a >< /b >< /blockquote >…
Buygeneric pills…
< b >< a href=”http://beta.hopestreetgroup.org/bookmarks/1455?decorator=print#comments” >norvasc and theophylline< /a >< /b >< /blockquote >…
Buy_drugs without prescription…
< b >< a href=”http://communities.leviton.com/bookmarks/2013?decorator=print#comments” >c-section scar pain symptoms pregnancy< /a >< /b >< /blockquote >…
Buy_generic drugs…
< b >< a href=”http://community.landesk.com/support/bookmarks/1488?decorator=print#comments” >antidepressant drugs for cats< /a >< /b >< /blockquote >…
Buy_generic drugs…
< b >< a href=”http://www.screwfix.com/community/bookmarks/1372?decorator=print#comments” >over the counter birth control< /a >< /b >< /blockquote >…
Buy_generic meds…
< b >< a href=”http://solid.community.appliedbiosystems.com/bookmarks/3154?decorator=print#comments” >drug detection testing< /a >< /b >< /blockquote >…
Buy_generic meds…
< b >< a href=”http://community.music123.com/bookmarks/1218?decorator=print#comments” >birth control pills for pms symptoms< /a >< /b >< /blockquote >…
Buy_drugs without prescription…
< b >< a href=”http://talk.sonyericsson.com/bookmarks/1530?decorator=print#comments” >otc proton pump inhibitors< /a >< /b >< /blockquote >…
Buy_no prescription…
< b >< a href=”http://eltcommunity.com/elt/bookmarks/1307?decorator=print#comments” >gall bladder cancer surgery< /a >< /b >< /blockquote >…
Buy_it now…
< b >< a href=”http://talk.sonyericsson.com/bookmarks/1587?decorator=print#comments” >best life diet< /a >< /b >< /blockquote >…
Buy_no prescription…
< b >< a href=”http://community.lls.org/bookmarks/1783?decorator=print#comments” >cheap travel nebulizer< /a >< /b >< /blockquote >…
Buy_generic drugs…
< b >< a href=”http://eltcommunity.com/elt/bookmarks/3187?decorator=print#comments” >how strength training effects osteoporosis< /a >< /b >< /blockquote >…
Buy_generic drugs…
< b >< a href=”http://www.screwfix.com/community/bookmarks/1610?decorator=print#comments” >xanax and pregnancy< /a >< /b >< /blockquote >…
Buy_generic pills…
< b >< a href=”http://communities.netapp.com/bookmarks/2170?decorator=print#comments” >green nerf ds lite armour< /a >< /b >< /blockquote >…
Buy_generic pills…
< b >< a href=”http://community.techweb.com/bookmarks/2568?decorator=print#comments” >bmi chart for kids< /a >< /b >< /blockquote >…
Buy_generic drugs…
< b >< a href=”http://community.lls.org/bookmarks/1990?decorator=print#comments” >buy cheap clomid< /a >< /b >< /blockquote >…
Buy_it now…
< b >< a href=”http://hopestreetgroup.org/bookmarks/2984?decorator=print#comments” >lidocaine injectable< /a >< /b >< /blockquote >…
Buy_it now…
< b >< a href=”http://hopestreetgroup.org/bookmarks/3221?decorator=print#comments” >dhea treatment of depression< /a >< /b >< /blockquote >…
Buy_drugs without prescription…
< b >< a href=”http://solid.community.appliedbiosystems.com/bookmarks/1790?decorator=print#comments” >pregnancy issues with men< /a >< /b >< /blockquote >…
Buy_no prescription…
< b >< a href=”http://www.harmonycentral.com/bookmarks/4942?decorator=print#comments” >symptoms of chocolate allergy< /a >< /b >< /blockquote >…
Buy_it now…
< b >< a href=”http://www.protocolexchange.com/bookmarks/1817?decorator=print#comments” >deadliest type of cancer< /a >< /b >< /blockquote >…
Buy_generic pills…
< b >< a href=”http://community.lls.org/bookmarks/3548?decorator=print#comments” >genie francis weight loss< /a >< /b >< /blockquote >…
Buy_now…
< b >< a href=”http://cellnetwork.community.invitrogen.com/bookmarks/2007?decorator=print#comments” >zyrtec and drug tests< /a >< /b >< /blockquote >…
Buy_generic meds…
< b >< a href=”http://solid.community.appliedbiosystems.com/bookmarks/3074?decorator=print#comments” >persistent nausea and stomach pain< /a >< /b >< /blockquote >…
Buy_generic meds…
< b >< a href=”http://community.jboss.org/bookmarks/2373?decorator=print#comments” >respiratory infection humidity dry antibiotics avelox< /a >< /b >< /blockquote >…
Buy_generic pills…
< b >< a href=”http://community.crn.com/bookmarks/2165?decorator=print#comments” >find clomid cheap in us< /a >< /b >< /blockquote >…
Buy_now…
< b >< a href=”http://communities.netapp.com/bookmarks/2763?decorator=print#comments” >sandwich elisa for hepatitis b< /a >< /b >< /blockquote >…
Buy_generic meds…
< b >< a href=”http://community.techweb.com/bookmarks/3211?decorator=print#comments” >colon cancer lymph node< /a >< /b >< /blockquote >…
Buy_without prescription…
< b >< a href=”http://eltcommunity.com/elt/bookmarks/2229?decorator=print#comments” >cipro for sinus infection< /a >< /b >< /blockquote >…
Buy_generic meds…
< b >< a href=”http://community.landesk.com/support/bookmarks/2614?decorator=print#comments” >symtons of canine gall bladder disease< /a >< /b >< /blockquote >…
Buy_generic meds…
< b >< a href=”http://solid.community.appliedbiosystems.com/bookmarks/2308?decorator=print#comments” >what causes constant itching< /a >< /b >< /blockquote >…
Buy_generic pills…
< b >< a href=”http://www.harmonycentral.com/bookmarks/5417?decorator=print#comments” >washington university marfan losartan study< /a >< /b >< /blockquote >…
Buy_drugs without prescription…
< b >< a href=”http://communities.netapp.com/bookmarks/3020?decorator=print#comments” >clinical trial ediary data< /a >< /b >< /blockquote >…
Buy_now it…
< b >< a href=”http://community.jboss.org/bookmarks/2728?decorator=print#comments” >seed implant for prostate cancer< /a >< /b >< /blockquote >…
Buy_drugs without prescription…
< b >< a href=”http://community.music123.com/bookmarks/2408?decorator=print#comments” >rules on flying during pregnancy< /a >< /b >< /blockquote >…
Buy_drugs without prescription…
< b >< a href=”http://community.crn.com/bookmarks/2639?decorator=print#comments” >neurontin and mood lability< /a >< /b >< /blockquote >…
Buy_generic meds…
< b >< a href=”http://community.crn.com/bookmarks/2643?decorator=print#comments” >adult male wheezing new onset< /a >< /b >< /blockquote >…
Buy_drugs without prescription…
< b >< a href=”http://community.music123.com/bookmarks/2467?decorator=print#comments” >menses while on birth control pills< /a >< /b >< /blockquote >…
Buy_generic drugs…
< b >< a href=”http://www.screwfix.com/community/bookmarks/2879?decorator=print#comments” >can iodine help thyroid function< /a >< /b >< /blockquote >…
Buy_generic drugs…
< b >< a href=”http://community.jboss.org/bookmarks/3068?decorator=print#comments” >breven medication for add< /a >< /b >< /blockquote >…
Buy_generic drugs…
< b >< a href=”http://community.music123.com/bookmarks/2727?decorator=print#comments” >information about treatment for leg edema< /a >< /b >< /blockquote >…
Buy_generic drugs…
< b >< a href=”http://hopestreetgroup.org/bookmarks/7508?decorator=print#comments” >prozac overdose and tardive dyskinesia< /a >< /b >< /blockquote >…
Buy_generic meds…
< b >< a href=”http://community.jboss.org/bookmarks/3176?decorator=print#comments” >dogs to detect cancer< /a >< /b >< /blockquote >…
Buy_generic drugs…