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Effectiveness of Credit Management Policies as a Treasury Management Tool in Enhancing Financial Performance: The Case of Colcom Pvt Ltd. 2015-2019

Author

Listed:
  • Samson Mbano

    (Midlands State University, Gweru, Zimbabwe,)

  • Ongayi Wadesango

    (University of Limpopo, South Africa,)

  • Newman Wadesango

    (University of Limpopo, South Africa,)

Abstract

This study evaluated the viability of credit arrangement policies in enhancing financial performance of firms. The purpose of the study was to evaluate amongst other things, the effects of money receipting framework on monetary execution and the effects of enthusiasm on past due records. A logical exploration configuration was utilized in this investigation just as a multivariate relapse investigation was directed to decide the coefficients of the factors. The study adopted a quantitative research methodology and data was collected using a questionnaire. Judgemental inspecting method was utilized on a sample size of 11 representatives out of a whole populace of 20 workers. In addition, two top administration representatives were met for information sharing. The results indicated that the current credit administration strategies of Colcom Ltd were not completely executed and furthermore, they positively affected financial execution. The study concluded that credit arrangements had the best effect on budgetary execution, followed by some factors such as the economic instability and political interventions. This study recommends the full implementation of the current credit management policies, regular training of credit officers and to practice scientific credit control (application of risk evaluation techniques). This would improve their efficiency in credit analysis and customer analysis management to secure as much as possible their assets, and reduce the high chances of turning into credit losses and their negative effects on good financial performance.

Suggested Citation

  • Samson Mbano & Ongayi Wadesango & Newman Wadesango, 2022. "Effectiveness of Credit Management Policies as a Treasury Management Tool in Enhancing Financial Performance: The Case of Colcom Pvt Ltd. 2015-2019," International Journal of Economics and Financial Issues, Econjournals, vol. 12(5), pages 64-70, September.
    • Handle: RePEc:eco:journ1:2022-05-7
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    References listed on IDEAS

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    1. Morris Lamberson, 1995. "Changes in Working Capital of Small Firms in Relation to Changes in Economic Activity," American Journal of Business, Emerald Group Publishing, vol. 10(2), pages 45-50.
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    Cited by:

    1. Rahil Salim AL-Nabhani & Rusl Khamis AL- Alwi & Saja Samir AL-Zadjali & Dr. Nuzhat Sadriwala, 2024. "Relationship Between Credit Management and Financial Performance of Listed Banks in Oman," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(2), pages 1809-1827, February.

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    More about this item

    Keywords

    credit management policies; treasury; management tool financial performance;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance

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