As someone who is in charge of a business, you need to make sure that your company does not fall victim to taking on too much debt. No one wants that as with debt comes interest rates. If you have a lot of debt, then these types of interest rate can bring up a lot of extra money to be paid. That is why you do not want to take on bad debt and inevitably, have more risk.
- If you are looking to make the most profit, you need to avoid taking on debt.
- Some people are far too inclined to take on debt because they feel a little bit of success.
- There are other people who struggle to figure out what it is that makes their customers happy.
“Customers are important assets but they can be high risk assets. Every business must ensure, where possible, that they have the right clients, and the appropriate policies and procedures to manage them.”