EFFECT OF CREDIT CONTROL ON SMALL ENTERPRISES IN NIGERIA

This study investigates the effect of credit control on the financial performance of small-scale enterprises, using Alaka Venture in Saki, Nigeria, as a case study. The specific objectives include assessing the impact of credit control practices on financial performance, evaluating the effectiveness of current mechanisms in managing bad debts, and analyzing the relationship between credit control and customer retention. A survey research design was employed, and data were collected through structured questionnaires administered to 50 employees involved in credit management. Statistical analysis was conducted using SPSS to test the hypotheses and interpret the findings. Results reveal that credit control practices significantly influence the financial performance of small enterprises, improving cash flow and profitability when properly implemented. However, the current mechanisms for managing bad debts were found to be only partially effective, with a need for more robust policies. Additionally, a positive relationship was identified between credit control and customer retention, suggesting that clear credit policies and effective communication contribute to customer loyalty.The study concludes that strengthening credit control practices is essential for the financial health and sustainability of small enterprises in Alaka Venture. Recommendations include refining credit control policies, training staff, adopting advanced technology for credit management