ABSTRACT

The aim of this research work is to appraise "effects of credit management on the

liquidity position of a manufacturing firm focused on Nigerian breweries plc

Aba". This is because; a trade credit is a short tenn source of finance and

sometimes takes 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 liquidity

position of the manufacturing company as well as to highlight the advantages of

effective and efficient management of trade credit amongst to others.

Furthennore, this research work will be of immense significance to the staff of

Nigerian breweries plc Aba as well as the student 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 puipose 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 there 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 credits' assessments amongst others.