AN INVESTIGATION INTO THE IMPORTANCE OF THE CREDIT CONTROL PROCEDURES OF SMEs IN WEST SUSSEX

Student, A. (2015) AN INVESTIGATION INTO THE IMPORTANCE OF THE CREDIT CONTROL PROCEDURES OF SMEs IN WEST SUSSEX. Undergraduate thesis, University of Chichester.

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Abstract

Small and medium-sized enterprises (SMEs) have seen a dramatic increase of late
payment over the last few years. According to The Financial Time, 85 per cent of UK
SMES have experienced late payment in the past 12 months (Groom, 2014). As a
result, the research project attempted to observe whether this is the case with SMEs
in West Sussex. The aim of the research was to assess whether SMEs in West Sussex
are implementing an effective credit control procedures and its influence on a
company’s working capital and cash flow.
In order to achieve this research, 17 small business owners and a SME consultant
participated in the data collection process and they were asked about their views
and insights on credit control and its impact on a company’s working capital and
cash flow position. This was to gain knowledge from SME owners in West Sussex
about the current use of credit control procedures and ways to improve them
The main findings indicate 71% of SMEs in West Sussex are still experiencing late
payment for supplied goods and services within the past 12 months. 65% of the
respondents admit to not invoicing immediately after goods and services are
performed. While, 53% of the respondents confess to not establishing credit limits
before granting credit to their customer. Results show that the lack of knowledge
and advice upfront might be the issue; however there are ways in which this can be
rectified. SME owners are recommended to have a proactive approach towards
credit control and seek additional support and training to increase their level of
knowledge in this area. This is believed to help SMEs manage their working capital
and cash flow better.

Item Type: Thesis (Undergraduate)
Uncontrolled Keywords: Accounting Finance
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
Divisions: Departments > Business School
Undergraduate Dissertations
Depositing User: Steve Bowman
Date Deposited: 29 Jul 2015 11:08
Last Modified: 13 Aug 2015 13:25
URI: http://eprints.chi.ac.uk/id/eprint/1448

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