What is Bad Debt?

Debt that is unlikely to be collected. Unpaid invoices (an example of bad debt) is often paid for out of the client’s reserve account and or sold to a collections agency.

  • Debt Financing

    Debt Financing is when a company borrows money from a lender with the principal and interest being paid back in scheduled payments.

  • Long-Term Debt (LTD)

    Long-Term Debt (LTD) are loans or other financial obligations that are being paid down over the span over more than one year. You will find long-term debt in the long term section of the Liabilities on a Balance Sheet.

  • Account Debtor

    Someone who owes an obligation by virtue of an account, chattel paper, or general intangible.

Debt Financing vs. Equity: What’s Right For Your Business?

Reading time: 3 mins When it comes to financing your business, how do you k...
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