Improving Credit Evaluation For Nigerian Manufacturing Sector Using Analytical Hierarchy Process (Ahp)
ABSTRACT
Analytical Hierarchy Process was applied in
this study to reduce time used in the appraising credit request from Nigerian
manufacturing sectors by banks. The major factors/criteria weighed include
financial structure of the firm, managerial structure of the firm, sales &
marketing structure, sectorial structure, company's ethics and character, and
collateral. Result shows that company morality & character has the highest
local weight of 32% followed by managerial structure (2 1%), financial structure
(18%), collateral (13%). sectorial structure (9%) while sales & marketing
structure has the lowest local weight of 7%. Thus, in the evaluation of credit
repayment potential of any manufacturing firm in Nigeria, credit analyst should
assign maximum time for assessing the morality and character of the company
while the minimum time should be spent on sales and marketing structure of the
requesting company. This method was found to reduce the turnaround time (TAT)
of credit evaluation by approximately 30% with reduction in the creation of
non-performing loan. The consistency of judgement is calculated to be 5% which
is within the tolerance level of 10%.
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MICHAEL, U (2021). Improving Credit Evaluation For Nigerian Manufacturing Sector Using Analytical Hierarchy Process (Ahp). Repository.mouau.edu.ng: Retrieved Nov 22, 2024, from https://repository.mouau.edu.ng/work/view/improving-credit-evaluation-for-nigerian-manufacturing-sector-using-analytical-hierarchy-process-ahp-7-2
UNIVERSITY, MICHAEL. "Improving Credit Evaluation For Nigerian Manufacturing Sector Using Analytical Hierarchy Process (Ahp)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 31 Aug. 2021, https://repository.mouau.edu.ng/work/view/improving-credit-evaluation-for-nigerian-manufacturing-sector-using-analytical-hierarchy-process-ahp-7-2. Accessed 22 Nov. 2024.
UNIVERSITY, MICHAEL. "Improving Credit Evaluation For Nigerian Manufacturing Sector Using Analytical Hierarchy Process (Ahp)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 31 Aug. 2021. Web. 22 Nov. 2024. < https://repository.mouau.edu.ng/work/view/improving-credit-evaluation-for-nigerian-manufacturing-sector-using-analytical-hierarchy-process-ahp-7-2 >.
UNIVERSITY, MICHAEL. "Improving Credit Evaluation For Nigerian Manufacturing Sector Using Analytical Hierarchy Process (Ahp)" Repository.mouau.edu.ng (2021). Accessed 22 Nov. 2024. https://repository.mouau.edu.ng/work/view/improving-credit-evaluation-for-nigerian-manufacturing-sector-using-analytical-hierarchy-process-ahp-7-2