Evaluating the Credit and Collection system in

Candelaria Multi-Purpose Cooperative

Sophia B. Amol
Wyeth A. Cullarin
Kezia A. Guevarra
Shiela May J. Jimenez
Rationale
In current business, making sales are important. Owners think rapidly in order

to increase their sales and to market their products. But such costumers do not have

enough money to meet their needs and wants to buy some commodity, recently the

financial institution arises where they conducts financial transactions such as

investments, loans and deposits. And one of those Financial Institution is the

cooperatives. The primary objective of every Cooperative is to provide goods and

services to its members and enable them to attain increased income and savings,

investments, productivity and purchasing power and promote among them equitable

distribution of net surplus through maximum utilization. Thus, Cooperatives would

attain their objectives by the use of functions such as Credit and Collection system.

As mentioned lately, every member of the cooperative are united to meet their

common aspirations to provide their needs. And to use the function of credit wherein

it is an agreement between the borrower receives something and agrees to repay the

lender at some date in the future, but the collection policy must be effective.

However, Credit and Collection System has an important role of every cooperatives

but some cooperatives did not review their terms and policy.
 Credit and Collection are taking some risk wherein the department has an

ability to minimize it, eliminating the payment risk would has an effect of reducing

sales and profits. Otherwise, the challenge from the cooperative perspective is to

evaluate the Credit and Collection system in order to meet their common aspiration.

Hence, this study will have a potential impact to Candelaria Multi-Purpose

Cooperative reviewing their Credit and Collection system.

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

efficient Credit and Collection system in order to meet the expectations of the

members by developing the borrower to receives something value and for developing

a policy of payment. In this present study will evaluate the Credit and Collection

system by reviewing the terms and policy of Candelaria Multi-Purpose Cooperative to

increase the sales

Statement of the Problem

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

of Candelaria Multi-Purpose Cooperative.

And also, to answer the following questions:

1. What are the different types of Credit and Collection System?

2. What terms in Credit are used in Candelaria Multi-Purpose Cooperative?

3. What policies in Collection system are used in Candelaria Multi-Purpose

Cooperative?

4. How effective are the Credit and Collection System in terms of cash flow?
Significance of the Study

Conducting this study will be beneficial to the Management of Candelaria

Multi-Purpose Cooperative, to the other cooperatives, to the future researchers and

to the future entrepreneurs.

Primarily it is beneficial to the Management of Candelaria Multi-Purpose

Cooperative adopting the effective 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 efficient and effective 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.