| dc.description.abstract | The main objective of the study was to identify factors hindering SMEs from
committed and consistent credit repayments by focusing on SMES in Nairobi County.
The specific objectives were to: identify conditions put by banks in offering loans to
SMEs; assess whether or not SMEs are able to meet loan conditions put by banks; and
establish the impact of loan conditions put by banks on growth and sustainability of
SMEs. The study adopted a survey design method in determining the factors that
affect SMEs in credit repayment. Its target population comprised SMEs operating
within Nairobi County and sampled 100 SMEs within Nairobi County. The study
found that independent variable (Character, Capacity, Conditions, Security, Common
Sense and Contribution) explains 63.3 percent change of credit repayment. It found
that most people have an Account with the Sacco’s with the main reasons for
borrowing the loans from these institutions ranging from seeking start- up capital for
the businesses, purchasing inventory, business expansion and strengthening of the
financial base of the business. It found that the main reason for failure of credit
repayment is due to loans given out without any form of security to clients. It
recommended that that small and medium enterprises should have a structure where
funds are well projected over the period of repayment and portion money for such
repayments. | en_US |
