CHAPTER ONE1.0 INTRODUCTION1.1 BACKGROUND OF THE STUDYCredit management is a term used to identify accounting functionsusually conducted under the umbrella of accounts receivables. Essentially, thiscollection of processes involves qualifying the extension of credit to acustomer, monitors the reception and logging of payments on outstandinginvoices, the initiation of collection procedures, and the resolution of disputesor queries regarding charges on a customer invoice. When functioningefficiently, credit management serves as an excellent way for business toremain financially stable.Competent credit management seeks to not only protect the vendorfrom possible losses, but also protect the customer from creating more debtobligations that cannot be settled in a timely manner.Several factors are used as part of the credit management process toevaluate and qualify a customer for the receipt of some form of commercialcredit. This may include; gathering data on the potential customer’s, currentfinancial condition including the current credit score.11BRIEF HISTORY OF UNILEVER NIGERIA PLC ABAUnilever Nigeria Plc is a public liability company quoted on the Nigerianstock exchange since 1973 with Nigerian’s currently having 49 percent ofequity holidays established in Nigeria. Unilever Nigeria Plc started as a soapmanufacturing company and is today’s one of the eldest survivingmanufacturing organization in Nigeria. The company changed its name to“Unilever Nigeria Plc” in 2001.The company is into the manufacture and marketing of householdtoiletries and favorites which are manufactured in their various factorylocations in Nigeria. This is because they are so deeply committed to meet theeveryday needs of people everywhere in Nigeria. Such factors are located atLagos, Agbara, Oregun and Aba. Its staff strength is about one thousand eighthundred (1,800) employers. They also have indirect employees like contractstaff and others who range from our forty thousand employees throughout thecountry.The company has also made provision for assistance in fields of health,education, children welfare and potable water hygiene as part of its socialresponsibility programme in the Nigerian communities.12Conclusively, Unilever Nigeria Plc from research has been found to beinvolved in both credit and cash transactions with its customers.