Credit Management And Performance Of Selected Corporate Firms: A Case Study Of Mtn Uganda Limited

This study of credit management and performance among the selected corporate firms MTN Uganda limited was carried out to examine credit management towards the performance of corporate firms, with the objectives like (1) assessing the effectiveness of credit management policies of corporate firms,(2) to analyze the motives of holding credit on performance by corporate firms and finally (3) to find the important relationship between credit management performance of corporate firms. Cross sectional research design was used to assess the effectiveness of credit management policies of the firms. The sampling strategies that were used are simple random sampling and purposive sampling to select respondents who participated in the study. The sample was 3 5 respondents, where 5 were Administrators,5 managers,5 supervisors and 20 were other employees. Questionnaires as well as interview was used to collect data from the respondents. Data was then organized according to different themes processed and calculated in percentages then presented on frequencies on different tables. This study shows that there is a significant relationship between firms performance in terms profitability. Some of the recommendations made in this study are; management need to be cautious in setting up a credit policy that will not negatively affect performance and also they need to know how credit policy affects the operation of their firms to ensure judicious maximization of profits. Improper credit management reduces the firms performance hence low profits which may eventually lead to financial distress. The study further, recommended that MTN (U) Limited Products management should embrace a total credit management philosophy that is , putting credit management at the heart of both business and strategy development and the operational decision making .The company should actively consider ways of shortening the credit operating cycle to make the company more generative. A cost benefit analysis should be performed to determined whether it is worthwhile to employ more resources, additional staff or new plant to speed up the production process and shorten the credit operating cycle. The study recommends that further area of research should be finding out the contribution of working capital towards performance.