Credit Financing and Performance of SMEs in Lira Municipality, Uganda

Marus Eton, Fabian Mwosi, Deus Mutesigensi, Charles David Ebong


This study sought to examine the role of Credit financing on performance of SMEs in Lira Municipality. A sample of 120 respondents was considered with response rate of 100%. The findings indicated that extending credit to SMEs enables them to access essential resources, increase business diversification and increase productivity levels. The study recommends that Credit institutions should continue providing credit at affordable rates while endeavoring to train their clients on how to keep financial information, which is essential in assessing the borrower’s credit worthiness. SMEs should practice documenting their transactions, including information on personal characteristics, which are essential in assessing the credit worthiness of potential borrowers.

Keywords: Credit Financing, Interest rates, Creditor information, Collateral security, Firm Performance

Full Text: PDF
Download the IISTE publication guideline!

To list your conference here. Please contact the administrator of this platform.

Paper submission email:

ISSN (Paper)2222-1697 ISSN (Online)2222-2847

Please add our address "" into your email contact list.

This journal follows ISO 9001 management standard and licensed under a Creative Commons Attribution 3.0 License.

Copyright ©