Effect ofTrade Credit on the Performance of Small and Medium Scale Enterprises in Nigeria ( A Study of Selected Firms in Abia State ):- Philip Ozichi P
ABSTRACT
Small and medium scale enterprises are constantly
faced with the challenges of obtaining funds for I heir establishment and
expansion. This research work was embarked upon to buttress the effect of trade
credit as a source of finance and how it can be effectively managed to
guarantee efficient/ returns. Government contributions in ensuring credit
availability, sources of finance available to small-scale enterprises and
management of trade credit was also discussed. Data was collected using both primary
and secondary sources which included questionnaire, personal observation,
textbooks, etc. The data collected were presented and analyzed in tables using
chi-square statistical tool, and it was revealed that trade credit is a
suitable source of finance to small and medium scale businesses and it also
contributes to their profitability. Entrepreneurs and management were
recommended to. obtain trade credit to launch their businesses to the next
level instead of relying heavily on formalized sources of finance. They should
also obtain credit that is relatively proportionate to the size of their
business to avoid existence of idle fund. Also, efforts should be made in
maintaining prompt payment of invoice to reduce credit risk, as this will
ensure greater returns in the long run.
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PHILIP, P (2026). Effect ofTrade Credit on the Performance of Small and Medium Scale Enterprises in Nigeria ( A Study of Selected Firms in Abia State ):- Philip Ozichi P. Mouau.afribary.org: Retrieved Jan 07, 2026, from https://repository.mouau.edu.ng/work/view/effect-oftrade-credit-on-the-performance-of-small-and-medium-scale-enterprises-in-nigeria-a-study-of-selected-firms-in-abia-state-philip-ozichi-p-7-2
PEACE, PHILIP. "Effect ofTrade Credit on the Performance of Small and Medium Scale Enterprises in Nigeria ( A Study of Selected Firms in Abia State ):- Philip Ozichi P" Mouau.afribary.org. Mouau.afribary.org, 06 Jan. 2026, https://repository.mouau.edu.ng/work/view/effect-oftrade-credit-on-the-performance-of-small-and-medium-scale-enterprises-in-nigeria-a-study-of-selected-firms-in-abia-state-philip-ozichi-p-7-2. Accessed 07 Jan. 2026.
PEACE, PHILIP. "Effect ofTrade Credit on the Performance of Small and Medium Scale Enterprises in Nigeria ( A Study of Selected Firms in Abia State ):- Philip Ozichi P". Mouau.afribary.org, Mouau.afribary.org, 06 Jan. 2026. Web. 07 Jan. 2026. < https://repository.mouau.edu.ng/work/view/effect-oftrade-credit-on-the-performance-of-small-and-medium-scale-enterprises-in-nigeria-a-study-of-selected-firms-in-abia-state-philip-ozichi-p-7-2 >.
PEACE, PHILIP. "Effect ofTrade Credit on the Performance of Small and Medium Scale Enterprises in Nigeria ( A Study of Selected Firms in Abia State ):- Philip Ozichi P" Mouau.afribary.org (2026). Accessed 07 Jan. 2026. https://repository.mouau.edu.ng/work/view/effect-oftrade-credit-on-the-performance-of-small-and-medium-scale-enterprises-in-nigeria-a-study-of-selected-firms-in-abia-state-philip-ozichi-p-7-2