Question

Avoiding Bankruptcy/Discussion Board 33 Bankruptcy is often the last resort for an individual or company that needs a fresh start. Everyone should be concerned with obtaining and maintaining a good credit rating to avoid being in financial ruin. Come up with a good list of recommendation and suggestions to obtain and maintain a good credit rating and keeping you and/or your business solvent, liquid and in a good financial situation so you can buy a car, a house, promptly pay your bills, obtain credit for business assets and sleep will at night.

Answer 1

1. It is a common practice for every business to give credit and get credit for deferment of payments and receipts too. Businesses should properly monitor and maintain good relationship with customers and suppliers inorder to avoid liquidity crisis.
2. The suggestions to be financially healthy are as follows,
   1. Pay off the debts to the maximum extent by cutting the expenses to the minimum,
   2. Have frequent follow ups with debtors so that bad debts can be prevented to even a small extent,
   3. While paying off the debts it should be done on a priority basis,
   4. Go for a well planned financial forecast every year, and prepare financial norms to be followed across the enterprise to maintain healthy financial position,
   5. Always maintain good financial ratios regarding liabilities to assets to avoid being overtook by debts.