EFFECTS OF CREDIT MANAGEMENT ON LIQUIDITY POSITION OF A MANUFACTURING COMPANY

This project is written in partial fulfillment of the requirement for the award of Higher National Diploma. Let me state that I was motivated to write on the topic “The effects of credit management on the liquidity position of a manufacturing company” mainly because of the wealth of area of liquidity position in our society. Looking back at the quality of lectures received on the liquidity position of companies and their procedures, I can now happily say that this work is a dream come true. The purpose of this work is to make known to people the effect of credit management on the liquidity position of a manufacturing company, and the role it plays in our society. This project is organized in five (5) chapters. Chapter one; Introduction and Historical background of the manufacturing company this is involved; Nigerian Breweries Plc. It presents statements of the problem, research objective, statement of hypothesis, significance of the study, limitation, and scope of the study and definition of terms. In chapter two, the existing literature in the history of the topic, historical background of credit, credit policy, trade credit, credit management, effects of credit and bad debts on profitability, determination of liquidity, and the effects of credit on liquidity. Chapter three talks about the research methodology, sources of data, survey instrument, statistical treatment and analysis of data and reliability of data. In chapter four, data analysis, analysis of the questionnaire, published and unpublished data collected from the Brewery’s book, the result at a glance and test of hypothesis, interpretation of the result. Chapter five, this is where we have the summary of findings, discussion of findings, conclusion, recommendation, and bibliography.