Abstract: Credit management is a key issue in any organization since most business undertakings are based on timely payment agreed by both parties. This is because without thorough planning of firm’s credit components, it is hard for the firm to run its functions smoothly. A wide range of challenges affects SACCOs because most of their clients earn a modest income, resulting to members failing to pay the loans disbursed to them. The study aimed to find out the effect of credit appraisal on financial performance of SACCOs in Kakamega County. The study used descriptive research design. The target population was 556 staff in SACCOs in Kakamega County. Using a simple random sampling, a sample of 227 respondents was selected. Questionnaires were used to collect data. Questionnaires were used to collect data. Empirical data was analysed using simple regression and multiple regressions. The study found out that Credit Appraisal had significant positive effect on financial Performance. SACCO management should automate screening process and credit Appraisal processes to reduce chances of prospective borrowers supplying false information.
Keywords: Credit Appraisal, Credit Documentation, Credit Reporting.
Title: INFLUENCE OF CREDIT MANAGEMENT PRACTICES ON FINANCIAL PERFORMANCE OF SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN KAKAMEGA COUNTY, KENYA
Author: Mukachelelwa Khaoya Mercy, Dr. Muli Maingi, Mr. Dennis Bulla
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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