Data Analysis on Credit Tenure on Credit Demand
Name
DDBA 8110 - Business Operations
Walden
2022
Data Analysis on Credit Tenure on Credit Demand
Table 1 Credit Tenure on Credit Demand
Descriptive SA A
U
D D SD
TOTA
L
Long repayment duration leads to high
credit demand.
FREQUENCY 54 11 10 4 3 81
PERCENTAGE 65 14 12 5 4 100
Time to start repaying the loan affects
credit demand.
FREQUENCY 49 10 15 5 2 81
PERCENTAGE 60 12 18 7 3 100
Flexibility in repayment period affects
credit demand.
FREQUENCY 46 7 17 5 6 81
PERCENTAGE 56 9 21 6 8 100
Involving of clients in setting up
repayment period affects credit
demand.
FREQUENCY 31 19 19 7 5 81
PERCENTAGE 39 23 23 9 6 100
From the above analysis, 65% strongly agreed, 14% agreed, 12% were undecided, 5% disagreed
while 4% strongly disagreed with the idea that long repayment duration leads to high credit demand.
However, 60% strongly agreed, 12% agreed, 18% were undecided, 7% disagreed while 3%
strongly disagreed with the idea that time to start repaying the loan affects credit demand.
Furthermore, 56% of the respondents strongly agreed, 9% agreed, 21% were undecided,6% disagreed
while 8% strongly disagreed with the idea that flexibility in repayment period affects credit demand.
Finally, 39% strongly agreed, 23% agreed, 23% were undecided, 9% disagreed while 6% strongly
disagreed with that involving of clients in setting up repayment period affects credit demand.
From the above study, it’s apparent that majority of the respondents agreed with the idea that
long repayment duration leads to high credit demand as indicated by 79% of the respondents
who were for this idea. This might be attributed to the idea that long credit repayment period
gives or renders the client enough time to plan on how to repay back the credit. Longer time span
allows the client make enough profit from the borrowed money and hence strains less in
repaying the amount. However, long repayment periods allows the client to undergo high credit
advancement with an aim of investing heavily using this amount hence a guaranteed of high
profit returns.
Nevertheless, majority of the respondents were for the idea that time to start repaying the loan
affects credit demand as indicated by 72% of the respondents who were for this idea. This might
be attributed to the issue that when clients are allowed for some time to generate enough income
for their business they can be able to reorganize themselves for a particular suitable time to start
repaying the cash. Unlike the scenarios where prompt loan repayment is required, this strains the
clients so much that instead of using the turnover in repaying the cash, the client uses the
borrowed money in paying the credit, a whole lot of losses.
However, flexibility in credit repayment affects credit demand as indicated by 65% of the
respondents who were for this idea. This might be attributed to the idea that when clients are
considered in repayment of credit, for instance when a client is not able to pay credit at a
particular point, the financial institutions should consider them by not forcing them either to pay
or auctioning their properties. This will make clients feel even secure and have the confidence of
wanting even more credit from financial institutions with fair and flexible repayment periods.
Nevertheless, involving clients in setting up repayment periods affects credit demand as
indicated by 62% of the respondents who were for this idea, this might be attributed to the idea
that clients know better the performance of their businesses for instance farming business
requires some time to yield profits and long duration of waiting till the final process of
distributing the final product to the market should be considered. This will motivate them in
going for more credit putting in mind that they whole procedure will be considered and that no
harassment will occur in between the repayment period.
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