This study aimed at investigating the impact of credit management practices on the financial performance of petroleum companies in Uganda, with a focus on assessing the influence of credit policies, credit risk assessment practices, and credit collection efficiency. The research was conducted using a quantitative approach, where primary data was collected from petroleum companies operating in Uganda through structured questionnaires. Multiple logistic regression was used to analyze the data, with the dependent variable being financial performance, measured in terms of stability, liquidity, and profitability. The key independent variables included credit policies, credit risk assessment practices, and credit collection efficiency. The results of the logistic regression analysis indicated that each of the credit management practices significantly influenced the financial performance of petroleum companies. In the first model, assessing the impact of credit policies on financial performance, the results showed that credit limits (B = 0.532, p < 0.001), credit terms (B = 0.412, p < 0.001), payment collection policies (B = 0.356, p = 0.003), and credit risk management practices (B = 0.689, p < 0.001) all had a positive and statistically significant effect on the financial stability of companies. For the second model, evaluating the relationship between credit risk assessment practices and financial performance, the regression results revealed that creditworthiness evaluations (B = 0.725, p < 0.001), credit risk monitoring (B = 0.589, p < 0.001), use of collateral (B = 0.484, p < 0.001), and debtor payment history assessments (B = 0.315, p < 0.001) were all positively related to financial stability. In the third model, focusing on credit collection efficiency, the results demonstrated that timeliness of collections (B = 0.623, p < 0.001), collection team competency (B = 0.511, p < 0.001), use of electronic payment systems (B = 0.432, p < 0.001), and customer follow-up mechanisms (B = 0.375, p < 0.001) were all significant predictors of liquidity and profitability. The findings confirmed that effective credit management practices, including robust credit policies, rigorous credit risk assessment practices, and efficient credit collection mechanisms, are crucial for the financial success of petroleum companies. The study concluded that companies with strong credit management systems are more likely to be financially stable, maintain high liquidity, and achieve profitability. Recommendations from the study included the need for petroleum companies to adopt comprehensive credit policies, strengthen their credit risk assessment procedures, and improve their collection practices to enhance financial stability and profitability. Additionally, the adoption of electronic payment systems and improved customer follow-up mechanisms were recommended as vital strategies for improving liquidity and ensuring long-term financial sustainability.