@article{article_550363, title={MFBS CLIENT-ENTERPRISE PROFITABILITY AND LOAN FAILURE IN OGUN STATE NIGERIA}, journal={IJASOS- International E-journal of Advances in Social Sciences}, volume={5}, pages={386–393}, year={2019}, DOI={10.18769/ijasos.550363}, url={https://izlik.org/JA72EM24YW}, author={Adurayemi, Adu Cecilia and Sunday, Owualah, İkechukwu and Abiola, Babajide, Ayopo}, keywords={enterprise profitability,loan failure,record –keeping,loan size}, abstract={<p class="MsoNormal" style="margin-top:6pt;margin-right:0cm;margin-bottom:6pt;margin-left:0cm;text-align:justify;line-height:normal;"> <span lang="en-gb" style="font-size:10pt;font-family:Arial, ’sans-serif’;" xml:lang="en-gb">The study
investigated the client-enterprise profitability and loan failure of
microfinance banks (MFBs) borrowers in Ogun State with a population of forty
seven MFBs where twenty MFBs were selected as sample size for this study. The
survey design was used through the administration of questionnaire. The linear
regression method was used in analysing data and it was found out  that effective monitoring and constant record
checking was ensured by the microfinance banks’ staff that made the borrowers
keep records of their business transactions through the positive correlation
with loan size structuring, (X <sup>2 </sup>=171.859; p-value<0.01 and
correlation coefficient =0.416; p-value <0.01); enterprise profitability
further confirmed the highest hazard on period of default with further evidence
from the Omnibus tests of
model coefficients (X <sup>2 </sup> <sub>= </sub>38.645,
degree of freedom=5, P-value<0.001) as indicated in the statistical
relevance of the model. It was recommended that there should be an
interactive session (interview) between the loan manager and borrower for the
establishment of facts stated in the loan request form, quality cash-flow
analysis of enterprises should be properly done before loan is granted to SMEs
likewise there should be effective monitoring of loan usage by monitoring team
of the microfinance banks to avoid diversion. </span> </p> <p> </p>}, number={13}