TABLE OF CONTENTS
Declaration .......................................................................................... i
Approval. ............................................................................................ ii
Dedication ......................................................................................... .iii
Acknovvledgen1ent. ............................................................................... .iv
Table of contents ................................................................................... v
Chapter one
1.0 Background ....................................................................................... 1
1.1 Statement of the problem ........................................................................ 2
1.2 Purpose of the study ............................................................................. 2
1.3 Objective of the study .......................................................................... .2
1.4 Research questions ............................................................................... 2
1.5.0 Scope of the study ............................................................................. 3
1.5.1 Geographical Scope ........................................................................... 3
1.6 Significance of the study ....................................................................... 3
Chapter two
2.0 Literature review ................................................................................. 4
2.1 credit policy ....................................................................................... 4
2.1.1 Credit standards ............................................................................... 4
2.1.2 Debtors control systems ...................................................................... .4
2.1.3 Monitoring book debts ....................................................................... 6
2.2 Credit 111anagement. ............................................................................. 6
2.2.1 Goals of credit policy ......................................................................... 6
2.2.2Costs of credit .................................................................................. 6
2.2.3 Credit extension model. ....................................................................... 7
2.3 credit tern1s ....................................................................................... 7
2.4 Collection efforts ................................................................................ 8
2.5 Factoring of debts ............................................................................... 8
2.6 Conclusion ........................................................................................ 9
Chapter three
3.0 Methodology ...................................................................................... 10
3 .1 Study design ..................................................................................... 1 O
3 .2 Study variables .................................................................................. 1 O
3.3 Study population ................................................................................ 10
3.4 Sample design ................................................................................... 1 O
3.5.1 Simple Random Sampling ................................................................... 10
3.5.2 Purpose of sampling .......................................................................... 10
3.5.3 Stratified Sampling ........................................................................... 11
3.6 Sa1nple size ...................................................................................... 11
3. 7 Investigating procedures ....................................................................... 11
3.8 Data collection methods and research instruments ......................................... 11
3 .8.1 Data collection instruments .................................................................. 11
3. 9 Data presentation and analysis ................................................................ 12
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3 .10 Limitations of the study ..................................................................... 12
3 .1.1 Ti1ne constraint ............................................................................... 12
3.1.2 Financial constraints ......................................................................... 12
3 .1.3 Attitude of the respondents ................................................................. 12
Appendices ........................................................................................ 13
Questionnaire ...................................................................................... 14
Chapter four
4.1 Introduction .................................................................................. 17
4.1.1 Credit standards analysis ................................................................. 17
4.2 Nature and characteristics of customers ................................................... 17
4.3 Credit policy ................................................................................... 18
4.4 Credit Ten11s .................................................................................. 20
4.5 Credit standards .............................................................................. 21
4.6 Collection efforts ............................................................................. 22
Chapter five
5.1 Introduction ................................................................................... 25
5.2 Summary of major findings ................................................................. 25
5.3 Conclusion ..................................................................................... 26
5.4 Reco1nmendations ............................................................................ 26
Bibliography .................................................................................. 28
