The study looked at "credit financing and financial performance of small and medium eateries in Kasese district". The findings were interpreted, analyzed and discussed in relation to the objectives of the study as follows; to establish relationship between credit terms and financial performance of SMEs in Kasese district, to establish the relationship between access to credit and financial pe1formance of SlYIEs in Kasese district and to examine the relationship between Credit policy and financial pe1jormance of SMEs in Kasese district The research utilized literature from great authors such as (Babbie, E. (2001). The research used a correlational and analytical research design to come up with findings. Research data was collected using a random sampling technique. The study employed questionnaires. From the correlation results, the adjusted R-squared is a corrected goodness-off it (modal accuracy) it identifies the percentage of variance in the dependent variable, financial pe1jormance that is explained by the independent variable credit financing. in this case 68.3% of financial pe1jormance in Kasese is contributed by credit financing. The remaining 31. 7% is contributed by other factors such as; government policy, training and development and others. The Rand Adjusted R square values. The R-value represented the simple correlation and is 0.953", 'which represents a high degree of correlation. The adjusted R-squared is a corrected goodness-off it (modal accuracy) it identifies the percentage of variance in the dependent variable, financial pe1jormance that is explained by the independent variable credit. financing. In conclusion therefore the study showed a very strong positive relationship between credit financing (independent variable) and financial pe1jormance (dependent variable). It shows that through bivariate means, the correlation between credit financing and financial pe1jormance is r=0.953**.
