Research Objective: This study examined the effect of sustainable financing on the financial performance of manufacturing firms in Enugu State, Nigeria, focusing on long-term debt to total assets and short-term debt to total assets as independent variables, and return on asset and profit margin as dependent variables.
Methodology: An ex-post facto research design was adopted, utilizing secondary data obtained from the audited annual accounts and reports of manufacturing firms in Enugu State. The data were analyzed using simple linear regression.
Findings: The results revealed that long-term debt to total assets has a significant positive effect on return on asset (p = 0.008 < 0.05), while short-term debt to total assets has a significant positive effect on profit margin (p = 0.0175 < 0.05) of manufacturing firms in Enugu State, Nigeria.
Conclusion: Sustainable financing has a significant positive effect on the financial performance of manufacturing firms in Enugu State, Nigeria.
Recommendations: It is recommended that policymakers create incentives for manufacturing firms to access long-term sustainable financing options, which could include tax breaks, subsidies, or low-interest loans for investments in green technologies and sustainable practices.
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