A company can influence the demand for its goods through various means, including credit. Only when the higher profits from higher sales exceed the higher costs of receivables can businesses benefit from credit. Credit is characterized as an arrangement where in the contractual obligation to make payments later is exchanged for the right to possess goods or services without immediate payment. Finding out how credit management affects the intent of this study is to examine the financial performance of commercial banks in Mogadishu, Somalia. The goals were to find out how client appraisal affected commercial bank financial performance, how credit risk control affected commercial bank financial performance, and how collection policy affected commercial bank financial performance. purposive sampling, along with closed-ended questionnaires, was used to gather data from 141 participants in this descriptive cross-sectional research study. The study’s findings demonstrate that the financial performance of commercial banks in Mogadishu, Somalia, is significantly impacted by credit risk management, collection strategy, and client assessment. When <0.05 was the significance value, the model was considered statistically significant. The study found a weak positive relationship between the study variables, as indicated by the correlation coefficient R of 0.189, which depicts the relationship between the study variables. The study makes the case that bettering credit risk management and collection practices can result in reduced default rates and more effective debt recovery, which will ultimately improve the financial performance of commercial banks.