INFLUENCE OF CREDIT TERMS ON FINANCIAL PERFORMANCE OF SACCOS IN KAKAMEGA COUNTY; KENYA
Abstract
Credit management is one of the most essential activities in a company and cannot be neglected by any entity involved in the supply of credit lines no matter the nature of its business. Problems that affect SACCOs are several and credit management is a challenge on Sacco’s cash flows; hence, affecting smooth running of businesses. Whenever businesses extend credit, the assumption is always that the buyers will pay promptly. This has however made SACCOs unable to maintain their operations due to the competitive nature of the industry and hence some of the SACCOs have been forced to close shop or downsize. The objective of the study was to examine the influence of Credit Terms on Financial Performance of SACCOs in Kakamega County; Kenya. The study employed descriptive research design. The target population of the study included credit managers of the SACCOs. Census survey technique was applied on all the SACCOs. Structured questionnaires were used as the instruments for data collection. Data was analyzed using descriptive statistics and inferential statistics. This was aided by statistical package for social sciences (SPSS). The study found that Credit Term Practices positively influenced financial performance of SACCOS. The study strongly recommended for the embracing of Credit Terms Practices since employing such practices credit management practices improves on financial performance of SACCOs. The study recommended for further studies to be done in other areas of different financial institutions and use other analytical methods.
Key words: Credit Terms, Credit Management Practices, Financial Performance.
CITATION: Andeyo, L., Kadima, M. J., & Miroga, J. (2022). Influence of credit terms on financial performance of SACCOs in Kakamega County; Kenya. The Strategic Journal of Business & Change Management, 9 (1), 1030 – 1039.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2237
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