Effectiveness of credit collection policies and procedures : the case of BATELEC II employees Multi-purpose cooperative (BEMCO) / by Maybelle Joy R. Morete.

By: Contributor(s): Material type: TextTextLanguage: English Publication details: Indang, Cavite : 2012. Cavite State University- Main Campus,Description: xi, 111 pages : illustrations ; 28 cmContent type:
  • text
Media type:
  • unmediated
Carrier type:
  • volume
Subject(s): DDC classification:
  • 333.3  M81 2012
Online resources: Production credits:
  • College of Economics, Management, and Development Studies (CEMDS)
Abstract: MORETE, MAYBELLE JOY R. “Effectiveness of Credit and Collection Policies and Procedures: The Case of BATELEC I Employees Multi-Purpose Cooperative (BEMCO)”. Undergraduate Case Study. Bachelor of Science in Business Management, major in Financial Management. Cavite State University, Indang, Cavite. November 2012. Adviser: Prof. Estrellita D. Corpuz. A case study was conducted at the BATELEC II Employees Multi-Purpose Cooperative (BEMCO) located at Antipolo del Norte, Lipa City, Batangas. This study was conducted to allow the student to apply her gained knowledge in Business Management, especially in Financial Management, to actual experiences and real life working conditions. Specifically, the study aimed to identify the financial services offered by BATELEC II Employees Multi-Purpose Cooperative, determine the credit and collection policies and procedures of the cooperative, analyze the effectiveness of the credit and collection policies, and identify the problems encountered in the cooperative’s credit and collection system and recommend feasible solutions thereto. Data were obtained through actual observations, participation in the credit operations of the cooperative and personal interviews with the supervisor, credit officer, bookkeeper, and cashier. Primary data were collected from the office records and files. Additional data were gathered from books and internet. In comparing the effectiveness of credit and collection of BEMCO with other multi-purpose cooperatives that are offering credit, request letters were sent to Cavite State University Development Cooperative, AFP Finance Center Multi-Purpose Cooperative, and ACDI Multi-Purpose Cooperative. BATELEC II Employees Multi-Purpose Cooperative is a multi-purpose cooperative registered in the Cooperative Development Authority that is performing credit, service, and consumer operations. As a multi-purpose cooperative, BEMCO is committed to promote savings and stimulate capital formation for development activities of their members and employees. The researcher used accounts receivable turnover, average collection period, collection effectiveness index, and percent current to measure the effectiveness of the credit and collection policies of the cooperative. The performance effectiveness of the cooperative was compared with other multi-purpose cooperative also offering credit to its members. The problems encountered by the cooperative include not tracking of current and past due accounts, not following up member-borrowers with delinquency, the leniency of the credit committee when it comes to the credit investigation of member-borrowers and co-borrowers, lower actual monthly collection, and having no credit and collection policies and procedures manual. The cooperative’s effectiveness was found weak based on the performance measurements used, and this is mainly because of the leniency in implementing the credit policies of the cooperative. With this, the supposed monthly collection of BEMCO is decreased. Also, the cooperative did not follow-up its members with delinquency. This indicates that the credit and collection policies were not implemented strictly.
Star ratings
    Average rating: 0.0 (0 votes)
Holdings
Item type Current library Collection Call number Materials specified URL Status Notes Date due Barcode
Theses / Manuscripts Theses / Manuscripts Ladislao N. Diwa Memorial Library Theses Section Non-fiction 333.3 M81 2012 (Browse shelf(Opens below)) Link to resource Room use only CS-440 00008203

Case Study (BSBM--Financial Management) Cavite State University.

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

MORETE, MAYBELLE JOY R. “Effectiveness of Credit and Collection Policies and Procedures: The Case of BATELEC I Employees Multi-Purpose Cooperative (BEMCO)”. Undergraduate Case Study. Bachelor of Science in Business Management, major in Financial Management. Cavite State University, Indang, Cavite. November 2012. Adviser: Prof. Estrellita D. Corpuz.

A case study was conducted at the BATELEC II Employees Multi-Purpose Cooperative (BEMCO) located at Antipolo del Norte, Lipa City, Batangas. This study was conducted to allow the student to apply her gained knowledge in Business Management, especially in Financial Management, to actual experiences and real life working conditions. Specifically, the study aimed to identify the financial services offered by BATELEC II Employees Multi-Purpose Cooperative, determine the credit and collection policies and procedures of the cooperative, analyze the effectiveness of the credit and collection policies, and identify the problems encountered in the cooperative’s credit and collection system and recommend feasible solutions thereto.

Data were obtained through actual observations, participation in the credit operations of the cooperative and personal interviews with the supervisor, credit officer, bookkeeper, and cashier. Primary data were collected from the office records and files. Additional data were gathered from books and internet.

In comparing the effectiveness of credit and collection of BEMCO with other multi-purpose cooperatives that are offering credit, request letters were sent to Cavite State University Development Cooperative, AFP Finance Center Multi-Purpose Cooperative, and ACDI Multi-Purpose Cooperative. BATELEC II Employees Multi-Purpose Cooperative is a multi-purpose cooperative registered in the Cooperative Development Authority that is performing credit, service, and consumer operations. As a multi-purpose cooperative, BEMCO is committed to promote savings and stimulate capital formation for development activities of their members and employees.

The researcher used accounts receivable turnover, average collection period, collection effectiveness index, and percent current to measure the effectiveness of the credit and collection policies of the cooperative. The performance effectiveness of the cooperative was compared with other multi-purpose cooperative also offering credit to its members.

The problems encountered by the cooperative include not tracking of current and past due accounts, not following up member-borrowers with delinquency, the leniency of the credit committee when it comes to the credit investigation of member-borrowers and co-borrowers, lower actual monthly collection, and having no credit and collection policies and procedures manual.

The cooperative’s effectiveness was found weak based on the performance measurements used, and this is mainly because of the leniency in implementing the credit policies of the cooperative. With this, the supposed monthly collection of BEMCO is decreased. Also, the cooperative did not follow-up its members with delinquency. This indicates that the credit and collection policies were not implemented strictly.


Submitted copy to the University Library. 03/25/2013 CS-440

Copyright © 2023. Cavite State University | Koha 23.05