Abstract:
This study examined on the effect of credit financing on the financial performance of
small and medium enterprises in Jinja city council. The study applied a cross sectional
research design and descriptive approach. Data was collected from 65 as a target
population with accessible unit of inquiry being 56 respondents consisting of retail
shops, boutiques, saloons, hardware, and mobile money shops. Data was collected with
a closed ended questionnaire and statistical package for social sciences was used for
analyzing data from which frequency tables, descriptive statistics, reliability, validity,
correlation and regression results were obtained. The study findings revealed that there
is a positive and significant relationship between credit policy and financial
performance, interest rate and financial performance, and also on credit management
on financial performance of small and medium enterprise. The study therefore
recommends that to improve on financial performance, factors of credit policy, interest
rate, and credit management should be considered.
