A survey of the factors influencing accessibility of credit to independent petroleum dealers in Nairobi and its environ
Trade credit is a significant source of financing business. It enables businesses to expand their sales volume and carry out promotional activities. However this form of credit is not usually available to small businesses. This is because financial institutions do not provide trade credit to small businesses as they perceive them as risky. Most independent petroleum dealers are small businesses and mostly do not easily access loans. This study therefore sought to find out the factors influencing the accessibility of credit to independent petroleum dealers within Nairobi and its environs. The objective of the study was to determine factors influencing the accessibility of credit to independent petroleum dealers in Nairobi and its environs. The study adopted a descriptive design in its methodology. A census study was used since the population was small. In this case 44 independent petroleum dealers in Nairobi and its environs were involved in the study. Primary data was collected by questionnaire method. The result of the study showed that petroleum dealers obtained credit in order to increase their sales volume, expand their businesses and carry out promotional activities. The factors that determine whether financial institutions advanced credit to petroleum dealers include existence of sound financial system, good management of cash, proper books of accounts, avoiding under capitalization and ability for business to pay principle and interest to creditors.