Credit Management Systems of Enterprises in Uganda: The Dilema in 21 Century

The objectives of this Manuscript is to establish the relationship between credit management system and performance of private enterprises, evaluate the effectiveness of credit standards and screening process of credit applicants and to find out whether there are other factors affecting the performance of enterprises . These objectives were achieved using purpose sampling together with convenience sampling of 40 respondents of which 30 responded. The research was based on primary data collected using questionnaires and interviews and secondary data from already written documents. The findings of the research were that a company allows a grace period of 30 days indicated by 80%(table6).80% agree that credit period extended to applicants is 30 days and 6.67% for cash discount(table7). In establishing the effectiveness of credit standards and the screening process of credit applicants,80% of the respondents indicated that credibility is used(table 8).100% revealed that there is an independent person responsible for screening credit applicants(table10).The researcher recommended that the company should introduce more cash discounts, seek financial assistance to increase company’s scope and scale of operation.