Credit management system and performance of private enterprises in lira municipality
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Date
2015-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
Credit Management system is a set of policy measures that are designed by each
individual business entity to minimize costs associated with extension of credit while
maximizing the benefits from it. The purpose of the study is to establish the
effectiveness of credit management system in preventing financial resource loss
through bad debts.
With effect to increase in trade debtors and bad debts, the researcher sought to study
and find out the relationship between credit management system and performance of
private enterprises.
The objectives of the study were to; establish the relationship between credit
management system and performance of private enterprises, evaluate the effectiveness
of credit standards and screening process of credit applicants and to find out whether
there are other factors affecting the performance of Tern Gurni. These objectives were
achieved using purposive sampling together with convenience sampling of 40
respondents of which 30 responded.
The research was based on primary data collected using questionnaires and interviews
and secondary data from already written documents.
The findings of the research were that a company allows a grace period of 30 days
indicated by 80%(table6).80% agree that credit period extended to applicants is 30
days and 6.67% for cash discount(table7).
In establishing the effectiveness of credit standards and the screening process of credit
applicants,80% of the respondents indicated that credibility is used(table 8).100%
revealed that there is an independent person responsible for screening credit
applicants( table 10).
The researcher recommended that the company should introduce more cash discounts,
seek financial assistance to increase company's scope and scale of operation.
Description
A research report submitted to the College of Economics and Management science in partial fulfillment of the requirement for the Award of Bachelor of Business administration of Kampala International University
Keywords
Credit management system, Private enterprises, Uganda