noun a debt that is unlikely to be recovered or paid off
adjective referring to a debt that is considered unlikely to be repaid
In finance, bad debt refers to a debt that is unlikely to be collected, leading to a financial loss for the creditor.
In accounting, bad debt is recorded as an expense in the financial statements to reflect the loss incurred due to non-payment by debtors.
In banking, bad debt can affect a bank's profitability and capital adequacy ratios, leading to stricter lending policies.
In credit management, bad debt is a key metric used to assess the effectiveness of credit policies and the quality of the debtor portfolio.
In the financial industry, bad debt refers to loans that are unlikely to be repaid by the borrower. Writers may use this term in articles or reports discussing the impact of bad debt on a company's financial health.
Psychologists may use the term bad debt when working with clients who are experiencing stress or anxiety due to their financial situation, including issues with managing debt or facing bankruptcy.
Accountants often deal with bad debt when preparing financial statements for a company. They may have to write off bad debts as uncollectible, which can impact the company's bottom line.
Bankers may use the term bad debt when analyzing the credit risk of borrowers. They have to assess the likelihood of loans turning into bad debt and take appropriate measures to mitigate this risk.
Business analysts may study the trends in bad debt within a specific industry to identify potential risks for companies. They use this data to make recommendations for improving credit policies and reducing bad debt.