标题：EFFECTS OF CHOICE OF CREDIT FACILITIES ON FINANCIAL PERFORMANCE OF SMALL MEDIUM, ENTERPRISES IN RWANDA. A CASE SMEs REGISTERED WITH PRIVATE SECTOR FEDERATION OF RWANDA
期刊名称：European Journal of Business and Social Sciences
印刷版ISSN：2235-767X
出版年度：2017
卷号：6
期号：6
页码：97-111
出版社：European Society of Business and Social Sciences
摘要：of recent SMEs’ financial performance has received a growing attention in botheconomic and financial literature, much of which is in the developedeconomies. Much of the existing literature largely focuses on themacroeconomic and microeconomic factors that influence firm financing, and limitedattention given to the choice of the financing facilities on performances thereof. Thepurpose of this study was to analyze the choice of credit facilities on the financialperformance of SMEs in Rwanda. Specifically, the study focused on the choices madebased on the effect of interest charged on loan, trade credit, asset financing and servicequality on financial performance of SMEs in Rwanda registered by private sectorfederation. This study was based on an exploratory design. The target population for thestudy comprised of top 100 SMEs in Rwanda registered by private sector federation.The sample size of this study was all the 100 SMEs. Census approach was used in thisstudy since the sample was small. A questionnaire was used as main instrument for datacollection from premises of the participant SMEs. The study used both primary andsecondary data, where questionnaires was used for data collection. Cronbach’s alphatest was utilized in assessing reliability of research instrument. Data collected wasanalyzed through SPSS version 21. Data analysis involved statistical computations foraverages, percentages, and correlation and regression analysis. Descriptive statisticsand Correlation (using the Karl Pearson’s coefficient of correlation) was used to analyzethe data and establish the relationship between the dependent variables and the set ofindependent variables. From the findings of the study, it was concluded that externalborrowings are considered to be the cheapest source of financing because of the taxbenefits; SMEs access to external sources of funding depends largely on thedevelopment of financial markets, and bank loans and overdrafts are the mostwidespread debt financing methods for SMEs hence it was recommended that thereshould be an appropriate capital structure that generates the maximum profit for theSMEs, as too less equity financing increases the control of the owners to a large extent,banks should improve transparency on their internal ratings, SMEs should strive tobetter understand banks‟ loan requirements, deliver clear, complete and timelyfinancial and performance data, and improve rating-relevant factors such as cash flow,equity, accounting, controlling, management, the business strategy, collateral andguarantees and public policy should promote a code of conduct for minimum ratingsdisclosure, foster venture capital, and improve tax treatment of retained earnings.
关键词：Interest rate on loan and service; trade credits; asset financing; service quality;on performance of SMEs registered; private sector federation
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