ABSTRACT
Finance is the lifeblood of a business. All business needs cash to operate
efficiently. However, companies may not have all the cash they need to
finance their operations. On the other hand, companies need to
maintain and get more clients in their business. Though not all clients
have cash to pay for what they need, credit is offered to them and they
pay at a later date.
In this study, the researcher wanted to establish the relationship
between credit management and performance. The study was based on
the research objectives which were to examine the credit management
policy of the New Vision Printing and Publishing Company, by
establishing the criteria to be followed when extending credit to clients
and to examine the relationship between credit management and
financial performance.
The purpose of the study was to establish the effectiveness of credit
management on financial performance of the New Vision.
The research was analytical and descriptive in the nature and was based
on interviews, observations and questionnaires. A survey population of
40 employees was used. The researcher used purposive sampling
technique. The research was based on primary and secondary data.
The researcher intended to examine whether there is a relationship
between credit management and the financial performance of the New
Vision Printing and Publishing Company.
It s a normal practice that the company gives credit to its clients that it is
both new and existing ones. A big percentage of clients are given a
credit period of only one month. The criteria used in collecting debts are
mainly constant reminders and timely preparation and delivery of
invoices.
It is important to note that relationship between credit management and
financial performance exists in that if the credit control department
relaxes and or becomes very strict, the financial performance will be
negatively affected. If they relax, the debtors will not pay. If they
become over strict they will stop sales orders which will limit the flow of
revenue. Therefore, the credit control department should be moderate in implementing their policies.
SOWEDI, A (2021). The Effect Of Credit Management On The Financial Performance Of A Company (A Case Study Of New Vision Printing And Publishing Company). Afribary. Retrieved from https://afribary.com/works/the-effect-of-credit-management-on-the-financial-performance-of-a-company-a-case-study-of-new-vision-printing-and-publishing-company
SOWEDI, ARINAITWE "The Effect Of Credit Management On The Financial Performance Of A Company (A Case Study Of New Vision Printing And Publishing Company)" Afribary. Afribary, 03 Jun. 2021, https://afribary.com/works/the-effect-of-credit-management-on-the-financial-performance-of-a-company-a-case-study-of-new-vision-printing-and-publishing-company. Accessed 14 Oct. 2024.
SOWEDI, ARINAITWE . "The Effect Of Credit Management On The Financial Performance Of A Company (A Case Study Of New Vision Printing And Publishing Company)". Afribary, Afribary, 03 Jun. 2021. Web. 14 Oct. 2024. < https://afribary.com/works/the-effect-of-credit-management-on-the-financial-performance-of-a-company-a-case-study-of-new-vision-printing-and-publishing-company >.
SOWEDI, ARINAITWE . "The Effect Of Credit Management On The Financial Performance Of A Company (A Case Study Of New Vision Printing And Publishing Company)" Afribary (2021). Accessed October 14, 2024. https://afribary.com/works/the-effect-of-credit-management-on-the-financial-performance-of-a-company-a-case-study-of-new-vision-printing-and-publishing-company