CHAPTER ONE
Credit management is a term used to identify accounting functions
usually conducted under the umbrella of accounts receivables. Essentially, this collection of processes involves qualifying the extension of credit to a customer, monitors the reception and logging of payments on outstanding invoices, the initiation of collection procedures, and the resolution of disputes or queries regarding charges on a customer invoice. When functioning efficiently, credit management serves as an excellent way for business to remain financially stable.
Competent credit management seeks to not only protect the vendor from possible losses, but also protect the customer from creating more debt obligations that cannot be settled in a timely manner.
Several factors are used as part of the credit management process to evaluate and qualify a customer for the receipt of some form of commercial credit. This may include; gathering data on the potential customer’s, current financial condition including the current credit score.
BRIEF HISTORY OF UNILEVER NIGERIA PLC ABA
Unilever Nigeria Plc is a public liability company quoted on the Nigerian stock exchange since 1973 with Nigerian’s currently having 49 percent of equity holidays established in Nigeria. Unilever Nigeria Plc started as a soap manufacturing company and is today’s one of the eldest surviving manufacturing organization in Nigeria. The company changed its name to
“Unilever Nigeria Plc” in 2001.
The company is into the manufacture and marketing of household toiletries and favorites which are manufactured in their various factory locations in Nigeria. This is because they are so deeply committed to meet the everyday needs of people everywhere in Nigeria. Such factors are located at Lagos, Agbara, Oregun and Aba. Its staff strength is about one thousand eight hundred (1,800) employers. They also have indirect employees like contract staff and others who range from our forty thousand employees throughout the country.
The company has also made provision for assistance in fields of health, education, children welfare and potable water hygiene as part of its social responsibility programme in the Nigerian communities.
Conclusively, Unilever Nigeria Plc from research has been found to be involved in both credit and cash transactions with its customers.
There are many problems companies encounter as a result of poor credit management. Thus, the problems inherent in this research study as investigated are as follows:
(6) Finally, failure to comply with the agreed terms of agreement with the
company upon when paying the debt.
The main objective of this study is to appraise the impact of credit
management on the profitability of manufacturing firms and also providing effective means of reducing default in collection of accounts.
Other objectives include the following:
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