ABSTRACT
Nelson (2012) credit engagement
as simply the means by which an entity manages its credit sales. It is a
prerequisite any entity dealing with credit transactions since ii is
impossible to have a zero credit or delimit risk. Myers and Briales (2012)
opine that credit management is a methods and strategies adopted by a firm to
ensure that they maintain an optimal level of credit and effective management.
Nzotta (2010) opines that credit management greatly influences the Failure of financial
institutions. Ibis is because the failure of a firm is influenced to a large
extent by the q tull ii v of credit decisions and thus the quality of the risky
assets. Credit management is concerned primarily with managing debtors and
financing debts. 'Ihe objectives ol' credit management can be stated as it
helps in sale guarding c0mpanieS investments in debtors and optimizing
operational cash I1o\\ s. Credit Management can be viewed as written guidelines
that set the terms and condo ions lr supplying goods on credit, customer quali
lication criteria. procedure for making collections, and steps to be taken in
case of customer delinquency (Wikipedia. 201 0).Credit management can be define
as a lunction within an organization to improve and control credit policies
that will lead to increased revenues and lower risk including increasing
collections. reducing credit costs, extending more credit to creditworthy
customers and developing competitive credit terns. It can also be called credit
control (13a1ogun. 2009)Credit management is implementing and maintaining a set
of policies and procedures to minimize the amount of capital lied up in debtors
and to minimize the exposure of the business to bad debts 8 (http://wwv.
Briefs/ brief-- management. Credit Management. from a debtor's point is
managing finances especially debts so as not to have a tail of creditors
lurking behind your Hack. (credit management is a responsibility v that both
the debtor and the creditor should seriously take ( Adekunlc.20 I 0)
NWOKOCHA, O (2021). Impact Of Credit Management On Profitability Of Manufacturing Firm (A Study Of Unilever Port Harcourt) . Mouau.afribary.org: Retrieved Nov 26, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-credit-management-on-profitability-of-manufacturing-firm-a-study-of-unilever-port-harcourt-7-2
OLUCHI, NWOKOCHA. "Impact Of Credit Management On Profitability Of Manufacturing Firm (A Study Of Unilever Port Harcourt) " Mouau.afribary.org. Mouau.afribary.org, 07 Jul. 2021, https://repository.mouau.edu.ng/work/view/impact-of-credit-management-on-profitability-of-manufacturing-firm-a-study-of-unilever-port-harcourt-7-2. Accessed 26 Nov. 2024.
OLUCHI, NWOKOCHA. "Impact Of Credit Management On Profitability Of Manufacturing Firm (A Study Of Unilever Port Harcourt) ". Mouau.afribary.org, Mouau.afribary.org, 07 Jul. 2021. Web. 26 Nov. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-credit-management-on-profitability-of-manufacturing-firm-a-study-of-unilever-port-harcourt-7-2 >.
OLUCHI, NWOKOCHA. "Impact Of Credit Management On Profitability Of Manufacturing Firm (A Study Of Unilever Port Harcourt) " Mouau.afribary.org (2021). Accessed 26 Nov. 2024. https://repository.mouau.edu.ng/work/view/impact-of-credit-management-on-profitability-of-manufacturing-firm-a-study-of-unilever-port-harcourt-7-2