James Odongo

Lending Terms and Financial Performance of Smes in Uganda. James Odongo

The book explains how lending terms affects the financial performance of SMEs in Uganda. The SMEs sector in Uganda is extremely has limited access to finance in terms of lack of financial records, collateral security, credit worthiness, and high interest rates which later affects the performance of the SMEs. The purpose of the study was to examine the relationship between lending terms and financial performance of SMEs in Uganda through improved access to low cost finance and ease of access to banks. The study has created avenues for discussion to the extent that the financial institutions in Uganda have developed diverse lending platforms to SMEs to improve their financial performance and Reduce the collapse of SMEs before their first anniversary in order to encourage them to create a better operating business environment in the SME sector. I explore to encourage readers to compare our approach to bring in more insights to the SME & Banking sector best practices of lending to sustain SMEs performance in the fragile environments especially financial crisis in the global financial markets and fragile economies to create potential avenues for growth & development for job creation