Evaluating the Credit and Collection system in Tayabas

Community Multi-Purpose Cooperative

Sophia B. Amol
Wyeth A. Cullarin
Kezia A. Guevarra
Shiela May J. Jimenez

Rationale
A business is always established to gain profit. Various marketing strategies

creates the demand for products and services. Demand, however is driven by the

customer’s purchasing power in cash or through credit. In recent years, financial

institutions like the cooperatives have tried to bridged the gap between customers

demand and purchasing power by offering by it’s members products and services through

capital investments, loans and savings deposits. Such financial transactions are carefully

monitored by the cooperatives through a Credit and collection system.

The Tayabas Community Multi-Purpose cooperative operates with the objective of

providing goods and services to it’s members and enable them to attain increased savings

and capital investments, productivity and purchasing power and to the end the promotion

of an equitable distribution of net surplus among members by the maximum utilization of

the cooperatives resources. The challenge however, is in the effectivity and efficiency of

the cooperatives credit and collection system to avoid the future risks of member’s

defaults and non repayments of their credit purchases and cash loans.

There has to be a periodic review of the cooperatives credit terms and policy

agreements to evaluate the effectivity and efficiency of these specific policies, thus

minimizing the payment risks without reducing sales and profits. And the member-
borrowers are able to receive something of value and developing among them the

capacity to repay on time.

An overview of the above mentioned implies the used for an effective and efficient

Credit and collection system. Hence, this study will have a potential impact to the

Tayabas Community Multi-Purpose cooperative in reviewing their Credit and collection

system in order to meet their expectations and common aspirations of increasing sales

and maximizing profit.

Statement of the Problem

The purpose of this research is to evaluate the Credit and Collection System

of Tayabas Community Multi-Purpose Cooperative.

Specifically, it seeks to answer the following questions:

1. What are the different types of Credit and collection system?

2. What credit terms are used in Tayabas Community Multi-Purpose

cooperative?

3. What collection system/policies are used in Tayabas Community Multi-

Purpose cooperative?

4. How effective and efficient is the Credit and collection system in terms of cash

flow?
Significance of the Study

Conducting this study will be beneficial to the Management of Tayabas

Community Multi-Purpose cooperative, to the other cooperatives, to the future

researchers and to the future entrepreneurs.

Primarily it is beneficial to the Management of Tayabas Community Multi-

Purpose cooperative adopting the effective and efficient Credit terms and collection

policy. Specifically, this study may contribute a better understanding on how they

increase their sales and to provide a good commodity that every member needs. The

output of this study would risen out to them to be profitable and enhance a good

operation of the cooperative.

This present study will serve as another contribution to other cooperatives

coping the same evaluation within the system of Credit and collection. The result of

this, will serve as helpful to further look the terms and policy that brings satisfaction of

their members.

This is also relevant to the future researchers, that serves as an additional

information in evaluating a healthy Credit and collection system of the cooperative.

This study aims to incite a radiance of interest in the future researchers to come up

an effective and efficient study of Evaluation of Credit and Collection System.

The result of this study could also be used by future entrepreneurs, where the

study will be an eye opener about the good transaction of Crediting and collecting, In

order to increase their sales revenue, and some areas to be shown.