The efficiency of debt collection is the difference between a business that will succeed and a business that closes up.If you do not have control of your debt collection then you will eventually fail. All businesses that grant credit will be faced with the problem of bad debt at some stage. The best way to deal with bad debt is to have a good debt control system in place.There are three types of bad debt:
Can pay.
This is where your debtor can pay but will drag out non-payment as long as possib.