bad debt

noun

Meaning

Money owed to a business or lender that is considered uncollectible because the borrower is unable or unwilling to pay.

Examples

  • The company's annual report showed a significant increase in bad debt due to the recent economic downturn.
  • To maintain healthy cash flow, the firm implemented stricter credit policies to minimize the risk of bad debt.

Synonyms: unpaid bill, uncollectible, delinquent account, write-off