ABSTRACT
This study sought to identity the effects of trade credits
on the overall performance small-scale businesses with special emphasis on
their volume of sales and profit maximization as well as the problems and
prospects of trade credits on the small-scale businesses. Data were collected
on specific items and hypotheses of the study. Instruments used for this
research work were personal interviews, literature surveys and questionnaires.
The data were collected, collated presented and analysed with simple
statistical tools, namely descriptive table and percentages. Hypotheses testing
involved is chi-square. Records exist to show that small-scale businesses offer
trade credits to their tested and proven customers. This, as was discovered has
contributed to a large exent to the profit maximization of the company.
However, the incidence of had debts, shortage of working capital and the
consequent liquid on have been found to be caused by the ineffectiveness of
some small-scale businesses in holding tenaciously their credit policies.
Besides, the high level of default in settling debts associated with some
customers has also been discovered to be caused by the economic conditions
prevalent in the country. This no doubt, results in the customer inability to
settle their accounts as at when due, coupled with their dubiousness and the
incidence of unforeseen circumstances that occur after the disbursement of
goods. These findings have led to the conclusion that success in arresting the
rising incidence of bad debts, shortage of working capital, court cases and
other ills associated with trade credits in small-scale businesses lie in the
ability of the firms to fashion out workable credit administration procedures
and following to the core, the XII implementation of those procedures and
making sure that they only extend credits to businesses, organizations and individuals
with whom they have had cordia business relationships or they are very
knowledgeable in.
UKAUWA, M (2021). The Effects Of Trade Credits On The Overall Performance Of Small-Scale And Medium Scale Business. (A Case Study Of Two Selected Small-scale Businesss In Abia State). Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/the-effects-of-trade-credits-on-the-overall-performance-of-small-scale-and-medium-scale-business-a-case-study-of-two-selected-small-scale-businesss-in-abia-state-7-2
M, UKAUWA. "The Effects Of Trade Credits On The Overall Performance Of Small-Scale And Medium Scale Business. (A Case Study Of Two Selected Small-scale Businesss In Abia State)" Mouau.afribary.org. Mouau.afribary.org, 08 Jul. 2021, https://repository.mouau.edu.ng/work/view/the-effects-of-trade-credits-on-the-overall-performance-of-small-scale-and-medium-scale-business-a-case-study-of-two-selected-small-scale-businesss-in-abia-state-7-2. Accessed 01 Nov. 2024.
M, UKAUWA. "The Effects Of Trade Credits On The Overall Performance Of Small-Scale And Medium Scale Business. (A Case Study Of Two Selected Small-scale Businesss In Abia State)". Mouau.afribary.org, Mouau.afribary.org, 08 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/the-effects-of-trade-credits-on-the-overall-performance-of-small-scale-and-medium-scale-business-a-case-study-of-two-selected-small-scale-businesss-in-abia-state-7-2 >.
M, UKAUWA. "The Effects Of Trade Credits On The Overall Performance Of Small-Scale And Medium Scale Business. (A Case Study Of Two Selected Small-scale Businesss In Abia State)" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/the-effects-of-trade-credits-on-the-overall-performance-of-small-scale-and-medium-scale-business-a-case-study-of-two-selected-small-scale-businesss-in-abia-state-7-2