The impact of credit management on the profitability of a manufacturing firm in Nigeria

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Abstract

This study examined the impact of credit management on the profitability of a manufacturing firm using Unilever Nigeria Plc as a study. The credit management seeks to not only protect the vendor from possible losses, but also protect the customer from creating more debt obligations that cannot be settled in a timely manner. The specific objective is to appraise the impact of credit management on effective means of reducing default in collection of account. The sample comprises of hundred (100) employees who were randomly selected from different departments in Unilever Plc Aba Nigeria.  Data collected were analyzed using Chi-square techniques with the aid of statistical tools. The finding showed that, there is a relationship between manufacturing firm profitability and explanatory variables in this study which is credit management policy and it is significantly positive. The study recommends that a credit department should be established in the firm. It also recommends that a credit department should be established in the firm. It also recommends that a regular review if credit policies suit the changes in the business environment in order for the smooth functioning of the firm.
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The impact of credit management on the profitability of a manufacturing firm in Nigeria

3,000.003,200.00 (-6%)

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