The Impact Of Effective Credit Management On The Profitability

CHAPTER ONE INTRODUCTION 1.1   BACKGROUND OF THE STUDY Credit generally denotes loans and advance made either directly by a credit (lender) or a debtor (borrower) on the principles of different payment. The banks as a lender, provides credit facilities by making funds available to customers in agreed terms and condition of payment. The gain of credit to the bank is purposed to be huge profit instead of this over year, modern banks (particularly First Banks) have been recording huge amount of bad debt provision which increase with each consecutive. The term credit is the granting of money (loan…