Avoiding bad debt: the roles of credit control (A study of Unilever Nigeria PLC)
DADA, Olusegun D; OSHO, Augustine E
The granting of credit involves giving of goods to customers with the understanding that payment will be in future. This project work is designed to study the credit policy, credit investigation, the controlling limits and the debt collection in an organisation. Unilever Nigeria plc is used as case study. It was discovered that the company ensures that before a customer can be granted a credit facility, adequate credit information about the customer is obtained. After all the conditions of granting credit must have been fully satisfied. Unilever Nigeria plc will then make personal evaluation of the risk that will be involved in granting credit to the intending customer/debtor. The main instrument used in obtaining the necessary data for this research work is: questionnaire, textbook, internet and reports. The primary sources were used to gather the necessary data. The data collected for this research work were analysed through the use of tables, percentages method and chi-square. Also in our findings, there is no credit limit for any customer the limit depends on the circumstances. Finally, the study recommended and concluded that, in granting credits, there must be clear cut policies which the company must be prepare to operate and also take time in investigating the credit worthiness of the intending customer before extending such facilities to them.