The Impact Of Credit Management On The Profitability Of A Manufacturing Firm (A Case Study Of Unilever Plc Aba Nigeria
ABSTRACT
The aim of this research work is to appraise “The impact of credit management
on the profitability of a manufacturing firm focused on Unilever Nigeria Plc Aba”.
This is because; trade credit is a short term source of finance and sometimes
take the form of bills payable. The statement problem of this research banks
about the poor level of credit management and also the problems which the
firms encounter as a result of high-rate of bad debts.
The objective of this
research study is to highlight the effects of the credit management on the
profitability of the company as well as to highlight the advantages of effective
and efficient management of trade credit amongst others.
Furthermore, this
research work will be of immense significance to the staff of Unilever Nig. Plc
Aba as well as the students and the researcher since it aims at providing effective
means of reducing default in collection of accounts. Also, research questions like;
could a company’s liquidity problem be attributed to bad debt? On the average,
how long do you allow credit to customers? Etc. research instrument used were
questionnaires for the purpose of obtaining the desired result.
In treating and
analyzing the data collected, an extensive use of tabular information and
percentages were of great importance. In the light of the findings and
conclusions of this work, the following recommendations are put up: that then
should be a regular review of credit policies to suit the changes in the business
environment and that an enquiry unit should be established to take
responsibility for prospective credit’s assessments amongst others.
Comments