Credit Management Practices of Help Incorporated in Morong Rizal

CREDIT MANAGEMENT PRACTICES OF HELP ENTREPRENEURS
LAUNCH PLENTITUDE FOUNDATION (HELP)

INCORPORATED IN MORONG, RIZAL
CALENDAR YEAR 2020-2021
A Thesis
Presented to
The Faculty of the College of Accountancy
University of Rizal System
Binangonan, Rizal
In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Accountancy
CYRUSE C. LIWANAG
AMIEL P. MARASIGAN
BENCEL JOHN T. REYTA
May 7, 2021
APPROVAL SHEET
This thesis entitled “CREDIT MANAGEMENT PRACTICES OF HELP
ENTREPRENEURS LAUNCH PLENTITUDE FOUNDATION (HELP)
INCORPORATED IN MORONG, RIZAL”, has been prepared and submitted by
CYRUSE C. LIWANAG, AMIEL P. MARASIGAN, and BENCEL JOHN REYTA in
partial fulfilment of the requirements for the degree Bachelor of Science in
Accountancy, is hereby recommended for corresponding oral examination.
SUSAN D. CADIENTE, CPA, MBA

Date Adviser
Approved in partial fulfilment of the requirements for the degree Bachelor
of Science in Accountancy by the Oral Examination Committee
NICOLE HUBBARD ALDRIN B. BOCA

Member Member
ERNIE D. TANO, CPA, MBA

Chairman
Approved and accepted in partial fulfilment of the requirements for the
degree Bachelor of Science in Accountancy.

Date Dean, College of Accountancy
II
ACKNOWLEDGEMENT
The researchers wish to extend their sincerest gratitude of profound
thanks and genuine appreciation to those who have given their valuable
assistance to make their work possible.
ERNIE D. TANO, CPA, MBA, Dean of College of Accountancy, for
granting the approval to conduct the study and for his fatherly encouragement to
pursue the study;
SUSAN D. CADIENTE, CPA, MBA, their thesis adviser, for her
wholehearted efforts, valuable guidance, encouragement and suggestion for the
improvement of this study;
PROF. NICOLE HUBBARD, one of the experts, for the comments, worthy
suggestions and encouragement in pursuing this study;
PROF. ALDRIN B. BOCA, one of the experts, for sharing his statistical
wisdom and expertise in the statistical treatment needed for the study, for the
comments and suggestions for the improvement of the study.
PROF. YOLANDA VISTAL, their research instructor, for giving the
researchers the needed courage over challenges and for sharing her knowledge,
generosity, encouragement, support and invaluable suggestions for the
improvement of this study;
To their RESPONDENTS, who have been a part of their research, without
them this study will not be possible;
III
To their FAMILIES, PARENTS, AND FRIENDS who boosted the
researcher’s morale during their moment of struggles and who stood with them
all the times despite their limitations and weaknesses.
And above all, the ALMIGHTY GOD, who gives constant care and
provides them the greatest blessings, patience and strength to accomplish the
study despite all difficulties encountered.
The Researchers
IV
DEDICATION
This study is wholeheartedly dedicated to our beloved parents, who
have been our source of inspiration and gave us strength when
we thought of giving up. To our brothers, sisters, relatives,
mentor, friends, and classmates who shared
their words of advice and encouragement
to finish this study. And finally,
we dedicated this book to
the almighty god,
thank you for the guidance,
strength, power of mind, protection and skills.
THANK YOU.
CYRUSE C. LIWANAG
AMIEL P. MARASIGAN
V
ABSTRACT
TITLE CREDIT MANAGEMENT

PRACTICES OF HELP
ENTREPRENEURS LAUNCH
PLENTITUDE FOUNDATION
(HELP) INCORPORATED IN
MORONG, RIZAL CALENDAR
YEAR 2021.
AUTHORS Cyruse C. Liwanag

Amiel P. Marasigan
Bencel John T. Reyta
COURSE AND ACADEMIC YEAR Bachelor of Science in

Accountancy
S.Y. 2020-2021
TYPE OF DOCUMENT Undergraduate Thesis
TOTAL OF PAGES 109
NAME AND ADDRESS OF INSTITUTION University of Rizal System

Binangonan, Rizal
This study primarily aimed to assess the credit management practices of
Help Entrepreneurs Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal
Calendar Year 2020. The subjects of the study were the 100% employees of the
HELP Incorporated, in Morong, Rizal.
The study was conducted to be able to analyze and evaluate the credit
management practices of Help Entrepreneurs Launch Plentitude Foundation Inc.
in Morong, Rizal for the Calendar Year 2021.
VI
The researchers came up with 20 employees of head office of Help Inc.
engaged in Credit management industry in Morong, Rizal, and therefore utilized
100 percent of the respondents.
The researchers used a descriptive method and quantitative type of
research using a self-made Questionnaire-Checklist. It was used as the main
instrument to gather all the needed data on the implementation of this study and
was utilized in order to address the gaps and problems encountered in the study.
The findings of the study with regard to the profile of the respondents,
belongs to the ages 25, majority were male, single, college graduate, 3 years in
service, and a regular accounting staff.
With respect to the credit management practices of HELP Inc. in Morong,
Rizal, the capacity was ranked first with a weighted mean of 4.6 and obtained a
verbal interpretation of Always Practiced, the character and capital both with a
rank of 2.5, weighted mean of 4.5 and obtained a verbal interpretation of Always
Practiced, the condition ranked fourth with a weighted mean of 4 and obtained a
verbal interpretation of Frequent Practiced and the collateral was the last in rank
with a weighted mean of 3.4 and obtained a verbal interpretation of Frequent
Practiced.
The training program will benefit the employees through their output, they
will also give a pre-test and post-test to determine the knowledge they acquired.
VII
Based on the findings, the researchers concluded that; majority of the
respondents were in a male young adult, single whose college graduate and
have an experience regarding on how to properly manages credit loan process.
With regards to the accounting training program; the researchers conclude
that the program focused more on the least result of the respondents of HELP
Inc. in Morong, Rizal.
The researchers recommended a Training Program about Credit
Management Practices that they will conduct with the intention to impart and give
more knowledge about Credit Management necessary in the management of the
lending business. The training program will specifically cover the concepts of
Credit Management Practices and Credit Risk Management that will be a great
help to resolve their problems about credits.
VIII
TABLE OF CONTENTS
PAGES
TITLE PAGE i
APPROVAL SHEET ii
ACKNOWLEDGEMENT iii
DEDICATION v
ABSTRACT vi
TABLE OF CONTENTS ix
LISTS OF FIGURES xi
LISTS OF TABLES xii
Chapter
1. PROBLEM AND BACKGROUND OF THE STUDY
Introduction 1
Background of the Study 3
Theoretical Framework 13
Conceptual Framework 14
Statement of the Problem 16
Assumptions 17
Scope and Limitations 18
Significance of the Study 18
Definition of Terms 19
2. METHODOLOGY OF RESEARCH AND SOURCES OF DATA
Research Method 22
Setting of the Study 23
Subject of the Study 24
Sources of Data 25
Research Procedure 25
Statistical Treatment 26
IX
3. PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Profile of the Respondents in terms of age, sex, civil status,

educational attainment, years in service, position, status
of employment. 29
Respondents’ Perception on the Credit Management

Practices of Help Entrepreneurs Launch Plentitude
Foundation (HELP) Incorporated in Morong, Rizal 36
Training Program 46
4. SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Summary of Findings 55
Conclusions 59
Recommendation 59
BIBLIOGRAPHY 61
APPENDICES
A. Gantt Chart of Activities 64

B. Letter of Appointment of Thesis Adviser 65
C. Letter of Acceptance from Thesis Adviser 66
D. Letter of Appointment to the Chairman of the Panel 67
E. Letter of Acceptance to the Chairman of the Panel 68
F. Letter of Appointment to the Thesis Statistician 69
G. Letter of Acceptance from the Thesis Statistician 70
H. Letter to the Respondents 71
I. Questionnaire Checklist 72
J. Content Validation Certificate 73
K. Training Program Modules 74
CURRICULUM VITAE 90
X
LIST OF FIGURES
Figures Pages
1 Conceptual Model about the Assessed Credit

Management Practices of HELP Incorporated
in 14
Morong, Rizal
28
2 The Five-Point Likert Scale
XI
LIST OF TABLES
Tables Pages
1 Frequency, Percentage and Rank Distribution

of the Respondents’ Profile in terms of Age. 29

of the Respondents’ Profile in terms of Sex. 30

of the Respondents’ Profile in terms of Civil Status. 31

of the Respondents’ Profile in terms of Educational
Attainment. 32

of the Respondents’ Profile in terms of Years in
Service. 33

of the Respondents’ Profile in terms of Position. 34

of the Respondents’ Profile in terms of Status
of Employment. 35
8 Obtained Mean of the Respondents’ Perception

of the Credit Management Practices of Help
Entrepreneurs Launch Plentitude Foundation
(HELP) Inc. in Morong, Rizal with regards to
Character. 37

Capacity. 38

Capital. 40
XII
Collateral. 41

Condition 43
13 Composite Table of the Credit Management

Practices of Help Entrepreneurs Launch
Plentitude Foundation (HELP) Inc. in Morong,
Rizal. 44
XIII
Chapter 1
PROBLEM AND BACKGROUND OF THE STUDY
Introduction
The Philippines is currently being served by a growing number of
innovative and progressive Financing and Lending Companies. While the sector
is still in its early stages in the Philippines, startups and SMEs now have access
to a wider range of financing options including short-term corporate loans, invoice
financing and salary loans (Cloudcfo, 2020).
Certainly, financial matters are one of the most important issues in our
daily lives. They affect not only an individual’s personal and family life, but also
the person’s work life, that’s why most Filipinos, especially present generation,
have opened the door for aspiring entrepreneurs in the country. Because of the
presented business opportunities, Filipinos started learning and building their
own business. A business whether it’s small or big can be profiting because most
people are into it.
Credit management is a comprehensive process made up of the
monitoring of loan facilities, extension of credit, distinguishing the market
segments as well as delineating the returns generated. In order to make an
intrusion into new markets as well as enroll more clients depends on the
competence to rapidly and effortlessly make well-informed credit decision and set
appropriate lines of credit (Troy Egal, 2021).
1
As of the 2015 Poverty Census, poverty incidence in the Philippines
stands at 21.6 percent. This means that nearly one out of five Filipinos lives
below the poverty lines and is considered poor. CALABARZON ranks sixth
highest among the proposed federated regions in terms of annual per capita
poverty threshold at Php22,121 in 2015. It has the second lowest poverty
incidence (9.1 percent) next to NCR, but the eighth highest magnitude of poor
population, with 1,287,967. Quezon hast the lowest poverty threshold among
CALABARZON’s provinces, but it has the highest poverty incidence: 22.7
percent. Batangas has the second highest poverty incidence in the region at 9.3
percent, followed by Cavite at 6.85 percent, Laguna at 5.43 percent, and Rizal at
5.42 percent (PSA, 2020).
Rizal has a land area of 1,191.94 square kilometers or 460.21 square
miles. Its population as determined by the 2015 Census was 2,884,227. This
represented 20.01% of the total population of the CALABARZON region, 5.02%
of the overall population of the Luzon Island group, or 2.86% of the entire
population of the Philippines. Based on these figures, the population density is
computed at 2,420 inhabitants per square kilometer or 6,267 inhabitants per
square mile (Philatlas, 2018).
After a through thinking of the group, HELP Incorporated - Help
Entrepreneurs Launch Plentitude Foundation Incorporated was finally registered
to Securities and Exchange Commission in June 29, 2006 was formally launched
in July 3, 2006. It has its first branch in Morong, Rizal. Their business name,
provides financial help to poor Filipinos who want to start a small business.
2
Relative, the researchers choose the Help Incorporated in Morong Rizal,
to conduct a study about their Credit Management Practices; assessing their
Credit policy, principles and practices. The researchers came up with this study
to assess the Credit Management Practices of HELP Incorporated in Morong,
Rizal.
Background of the Study
Credit is the source of life of a successful company, without credit in the
economy, many companies would not be existing today. And stating up a
business would require a lot of capital and for it to happen businesses would get
credit in different lending institutions.
Credit management is defined as your company’s action plan to guard
against late payments or defaults by your customers. An effective credit
management plan uses a continuous, proactive process of identifying risks,
evaluating their potential for loss and strategically guarding against the inherent
risks of extending credit. Having a credit management plan helps protect your
business’s cash flow, optimizes performance and reduces the possibility that a
default will adversely impact your business.
Late payment and payment default situations happen with alarming
frequency – it’s critical to the financial health of your company to minimize them.
Customers who fail to pay their invoices or drag their feet in paying can directly
jeopardize the survival of your business, which is why having a credit
management system is important.
3
Many businesses find it challenging to properly evaluate and track the
creditworthiness of new customers. And when conducting business with foreign
customers, customer risk management becomes even more complex because it
can be difficult to interpret and rely on information used by foreign countries to
measure creditworthiness.
Solving the challenge is a must: One in five business bankruptcies
among small-to-medium enterprises occurs due to customers that default on their
invoices. And though medium and large companies are better equipped to
absorb a bad debt loss, non-payment events can still destroy their profit and spoil
growth plans.
By employing effective credit management procedures, you can help your
business bring in the revenue it’s entitled to and ensure long-term business
continuity (EulerHermes, 2020).
Credit management is essential to manage and control the risks
associated with credit sales. The purpose of credit management is to manage
both the financial and political risks associated with credit sales. The policy on
credit management comprises systems, guidelines and principles that serve as a
blueprint for employees in the credit department in awarding loans and steering
the total collection of credit facilities.
To be able to reduce the vulnerabilities associated with non-performing
loans, companies must exercise a better understanding of economic capacity of
clients, history of customers’ credit rating and varying repayment arrangements.
In order to make an intrusion into new markets as well as enroll more clients
4
depends on the competence to rapidly and effortlessly make well-informed credit
decisions and set appropriate lines of credit.
It explains the idea on how credit management plays a vital role in a
company as it can help to handle potential risks in the credit sales. The policies
in credit management need to understand and follow by the employees, this will
lead them to have an idea in the process of granting loan. The history of the
clients and the capacity to pay will also make the credit manager decide in
setting the credit limit (Chick Dieudone Ndab, 2018).
Organizations’ biggest challenge historically is the management of credit.
This is specifically for institutions dealing with financial services like commercial
banks. It would be too expensive for banks to ignore the aspects of credit
management considering that its interest is the main source of banks’ income. A
financial institution that fails to give attention to the function, sooner or later will
record poor performance characterized by lack non-performing loans.
The ideas presented above are connected to the study in a way that a
business way of managing a credit especially in banks will be a proof and will
show how competent they are, since having a well-organized and working credit
management is a good indication that they give importance to the use of it in
between finance and sales teams that it will build a balancing act to mitigate risk
and optimize opportunities (Evelyn Mureithi, 2016).
The relationship between credit management practices and performance
is mixed, there is a pattern emerging where when credit management practices
lead to an improvement in sales (volume and growth), it negatively impacts the
5
overall performance of the firm (financial results and ROI). This is true for all the
credit management practices used except for customization according to
solvency risk, conducting formal analysis for reasons for late payment, and credit
insurance for sales (Charity Anzazi Bungule, 2016).
Implementing a credit risk management strategy can result in increased
financial security for lenders and provide borrowers with loans they can handle to
build their credit. Understanding the credit risk management process, best
practices and techniques is the first step in crafting a risk assessment solution.
Risks are an inevitable part of banking operations, but that doesn’t mean
they can’t be mitigated. Commercial banks and private lenders are constantly
taking efforts to reduce the risk of fraud and cybersecurity threats to protect the
financial information of their clients, but also need to protect their own treasury
from unreliable borrowers.
When a borrower misses a monthly payment, or worse, defaults on a loan
altogether, the lending party at a loss. Even if collateral is taken, the time and
money spent to turn it into funds can still leave the lender with a negative return.
That’s why it’s incredibly important for financial institutions to thoroughly evaluate
each borrower’s credit risk, and as you will see, their own reserves and
environmental factors before signing off on a loan (GDS Link, 2020).
For any lender the importance of Credit Risk Measurement (CRM) is
paramount. It is the basis for which a lender can calculate the likelihood of a
borrower defaulting on a loan or meet other contractual obligations. More
6
broadly, credit risk management attempts to measure the probability that a lender
will not receive the owed principal and accrued interest, which if allowed to
happen, will lead to a loss and increase costs for collecting the debt owed.
In simple terms, credit risks are calculated based on a borrower’s ability to
repay the amount lent to them. Before a bank or an alternative lender issues a
consumer loan, they will assess the credit risk of the individual on what is more
commonly known as the five C’s: credit history, capacity to repay, capital, and
finally the overall loan’s conditions and collateral (Austin Clark, 2019).
It was found out that credit policy positively influences loan repayment
thus contributes to reduce loan default. The result showed that most of the
respondents indicated that well- defined credit policies positively influence loan
repayment which resulting in reduced delinquency.
A good credit policy shows the debtors that you care about them through
explaining how you do business and also it manages risk and reduces them. And
if well managed, a risk can be an opportunity. For example, if you assess that a
customer is insolvent, you can demand a payment in advance against an
interesting discount. This will help to refine the cashflow of the business while
avoiding any credit risk (Cheruiyot, 2015).
Several factors are used as part of the credit management process to
evaluate and qualify a customer for the receipt of some form of commercial
credit. This includes gathering data on the potential customer’s current financial
7
condition, including the current credit track record that discloses the character of
a customer in meeting obligations as well as collateral value.
The character, capacity, capital, condition and collateral are the five
components and also the factors that will help the company specifically the HELP
Incorporated, to trust in lending money to the future debtors. The data that will be
given by the borrowers will use to investigate them whether they are capable of
paying their debts or have an enough collateral whenever they are subject for
bankruptcy (Jhon Patrick Tingson, 2018).
It is concluded that determining the profile of the individuals who are
responsible in credit and collection in terms of school, age, gender, educational
attainment, years of experience, position and credit/loans provided by the
institutions, can help the credit and collection department of the institution in
realizing that the employees must be equipped with knowledge and expertise in
credit and collection that can contribute for the enhancement of their credit and
collection practices and in managing credit risk.
The credit and collection section of the Finance Resource Department of
the institution led by Credit Manager or Finance Director must practice excellently
the hiring of competent employees to handle the delicate and critical tasks with
the approval of Chief Finance Officer (CFO).
The profile of the employees is still important in the selection process of
hiring competent employees. The institutions’ credit and collection section of the
Finance Resource Department needs improvement in their CCMP as to planning,
organization and staffing, leadership, and coordination. The responsible
8
individuals in the group must work excellently and continue to improve their
services for better performance (Maria Delia M. Poot, 2020).
Credit financing should never be dispelled as a bane to local development,
especially when it is judiciously and carefully designed, accessed, managed, and
utilized to help address financing gaps in local governance. Instead, it should be
leveraged as a strategic tool of the LGU’s resource mobilization agenda. In the
Philippines, as in any other decentralized country, the right mix of policy,
monitoring, and access to a competitive credit market is critical (Alvina, 2019).
Although it's called character, the first C more specifically refers to credit
history: a borrower's reputation or track record for repaying debts. This
information appears on the borrower's credit reports. Information from these
reports helps lenders evaluate the borrower's credit risk. Many lenders have a
minimum credit score requirement before an applicant can be eligible for a new
loan approval. Minimum credit score requirements will vary from lender to lender
and from one loan product to the next. The general rule is the higher a borrower's
credit scores, the higher the likelihood of receiving an approval. Lenders also
regularly rely upon credit scores as a means for setting the rates and terms of
loans. The result is often more attractive loan offers for borrowers who have
good-to-excellent credit (Troy Segal, 2021).
Capacity measures the borrower's ability to repay a loan by comparing
income against recurring debts and assessing the borrower's debt-to-income
(DTI) ratio. Lenders calculate DTI by adding together a borrower's total monthly
debt payments and dividing that by the borrower's gross monthly income. The
9
lower an applicant's DTI, the better the chance of qualifying for a new loan. Every
lender is different, but many lenders prefer an applicant's DTI to be around 35%
or less before approving an application for new financing. In addition to
examining income, lenders look at the length of time an applicant has been
employed at their current job and future job stability (Troy Segal, 2021).
Lenders also consider any capital the borrower puts toward a potential
investment. A large contribution by the borrower decreases the chance of default.
Borrowers who can place a down payment on a home, for example, typically find
it easier to receive a mortgage. Down payment size can also affect the rates and
terms of a borrower's loan. Generally speaking, larger down payments result in
better rates and terms. With mortgage loans, for example, a down payment of
20% or more should help a borrower avoid the requirement to purchase
additional private mortgage insurance (PMI) (Troy Segal, 2021).
Collateral can help a borrower secure loan. It gives the lender the
assurance that if the borrower defaults on the loan, the lender can get something
back by repossessing the collateral. Often, the collateral is the object one is
borrowing the money for: Auto loans, for instance, are secured by cars, and
mortgages are secured by homes. For this reason, collateral-backed loans are
sometimes referred to as secured loans or secured debt. As a result, loans that
are secured by some forms of collateral are commonly offered with lower interest
rates and better terms compared to other unsecured forms of financing (Troy
Segal, 2021).
10
The conditions of the loan, such as its interest rate and amount of
principal, influence the lender's desire to finance the borrower. Conditions can
refer to how a borrower intends to use the money. Consider a borrower who
applies for a car loan or a home improvement loan. A lender may be more likely
to approve those loans because of their specific purpose, rather than a signature
loan, which could be used for anything. Additionally, lenders may consider
conditions that are outside of the borrower's control, such as the state of the
economy, industry trends, or pending legislative changes (Troy Segal, 2021).
Research shows that age diversity in the workplace can improve
organizational performance. Studies also show that productivity in both older and
younger workers is higher in companies with mixed-age work teams. And age
diversity within work teams is positively related to performance when groups are
involved in complex decision-making tasks (A.R. Mazzotta, 2018).
Having both women and men in your teams means you benefit from the
different points of view and approaches that come from different life experiences.
A multiplicity of perspectives can spark creativity and innovation, and help
organizations spot and seize new opportunities. It can also encourage
organizations to challenge gender stereotypes (Rossa Brown, 2021).
Credit risk, if correctly identified and managed, can be leveraged as a
strategic opportunity. Through effective credit risk management your business is
able to greatly improve overall performance and secure a competitive advantage
(Marisit.com, 2019).
11
As an employer or hiring manager, there are a lot of things you take into
consideration when looking for a new employee. You want to be sure they can
get the job done and even surpass your expectations. You want to be sure that
they fit in with most of the people that are already employed and mesh into your
company culture. Lastly, you want to be sure they are taking this job for the long-
run. At the very least you expect them to stay with the company for at least two
years. So, in the process of looking for all of these things, the educational
background and past work experiences of your top candidates is bound to come
up (Nicole Nicholson, 2018).
Regular employees tend to be loyal to their jobs since their job is secured.
This helps boost their work performance and improve the quality of their products
and services. Investing by giving them training is a wise decision
(readysethired.com, 2019).
A job title is a term that describes in a few words or less the position held
by an employee. Depending on the job, a job title can describe the level of the
position or the responsibilities of the person holding the position. Employers use
job titles to categorize positions in their organization. A company's organization
chart will show all the positions in the company, listed by job title, the reporting
structure, and company management (Alison Doyle, 2021).
Being a permanent employee comes with many benefits. In addition to
getting a steady paycheck and job security, permanent employees enjoy
advantages such as health insurance, retirement savings plans and paid time off.
While the kind of benefits you receive as a permanent employee differ from
12
company to company, knowing you have a steady job brings a kind of peace of
mind you can’t get from contract or freelance positions (Anam Ahmed, 2020).
Theoretical Framework
This study is guided by 5 C’s Model, details the five important factors that
commercial banks will use in administration of credit which are expected to lead
to improved performance of loans. The 5 C’s Model for Credit was introduced as
a framework through which financial institutions build the policy for their credit
transactions (John Baiden, 2011).
This means that if HELP Incorporated have an assessment on what is
needed and how to prepare for the loan application process, this will help them to
improved their credit management practices. In turn, they will be able to use the
character, capacity, capital, condition and collateral of credit in their future
transactions. The result of this study will confirm whether HELP Incorporated
understands the need of proper credit management practices and the importance
of following the policy and guidelines in credit management.
13
Conceptual Framework
I. Profile of the
Respondents in
terms of:
I. Constructing of
 Age
 Sex
questionnaire
 Civil Status checklist
 Educational
Attainment II. Gathering of
 Years of Service Data through:
 Position
 Status of
Employment  Questionnaires
 Survey
II. What are the credit ASSESSED CREDIT
management
practices of HELP
Incorporated with
III. Tallying of MANAGEMENT
respect to: results
 Credit PRACTICES OF
 Character
 Capacity IV. Interpretation of HELP
 Capital data
 Collateral INCORPORATED IN
 Condition V. Presentation of
data MORONG, RIZAL
III. What is the
intervention can
researcher’s institute
to an enhanced credit
management
practices of Help
Entrepreneurs
Launch Plentitude
Foundation
Incorporated in
Morong Rizal.
14
FIGURE 1
CONCEPTUAL MODEL ABOUT THE ASSESSED CREDIT MANAGEMENT
PRACTICES OF HELP INCORPORATED IN MORONG, RIZAL
Conceptual Model, the researchers conceptualized the Input-Process-
Output (IPO) model. This research study's conceptual framework is represented
in a paradigm in figure 1 on the previous page.
The Input frame includes the profile of the respondents and credit
management practices of HELP Incorporated. It also consists of a questionnaire
that is used in gathering data and information from the respondents. This input
helps the researchers in determining the credit management practices of HELP
Incorporated in Morong, Rizal
The Process frame showed how the entire study is done. The method
used to solve the research problem is to provide a questionnaire to the
respondents. The questionnaires should be constructed by the researchers first
in order to gather the data that is needed to answer the research problem. With
enough data gathered from the questionnaires used, the researchers are able to
tabulate the data, interpret the credit management practices of HELP
Incorporated, and present the results from the interpretations.
The output of credit management practices of HELP Incorporated in
Morong, Rizal will be a great help for a future business owner of this field to know
the credit management practices and how it affects the lending decision-making
and success.
15
Feedback shows the direct flow of diagram in which the input and output
are interrelated to one another. The arrows connecting the different parts of the
model represent relationship and sequence.
Statement of the Problem
The study aimed to assess the credit management practices of HELP
Incorporated in Morong, Rizal calendar year 2020-2021 using 5 C's Model.
Specifically, this study focused to answer the following sub-questions:
1.) What is the profile of respondents in terms of:
1.1 Age
1.2 Sex
1.3 Civil Status
1.4 Educational Attainment
1.5 Years of Service
1.6 Position
1.7 Status of Employment
2.) What are the credit management practices of HELP Incorporated with
respect to:
2.1 Character
2.2 Capacity
16
2.3 Capital
2.4 Collateral
2.5 Condition
3.) What is the intervention can researcher’s institute to an enhanced
credit management practices of Help Entrepreneurs Launch Plentitude
Foundation Incorporated in Morong, Rizal?
Assumptions
In conducting the study of ‘Credit Management Practices of Help
Entrepreneurs Lending Plentitude Foundation (HELP) Incorporated in Morong,
Rizal’ the researcher will work with the following assumptions:
1. HELP Inc. in Morong, Rizal has the ability to properly examine the credit
worthiness of each new and existing clients.
The result of the assessment obtained a mean of 4.0 which means that
the HELP Inc. in Morong, Rizal conducts an investigation to the history
and cash flows of the clients.
2. HELP Inc. in Morong, Rizal has the ability to conduct an investigation to
the availability of collateral of the clients to support their loans. As a result
to the assessment obtained a mean of 3.5.
3. HELP Inc. in Morong, Rizal has the capacity to impose a penalty for late
payments.
17
The result of the assessment obtained a mean of 3.5 which means that
HELP Inc. in Morong, Rizal conducts an investigation to the client's
condition in availing a loan.
4. HELP Inc. in Morong, Rizal has the ability to meet the good credit
management practices.
Scope and Limitations
This descriptive research focused only on the credit management practice
of HELP Incorporated in Morong, Rizal. The research conducted on calendar
year 2020-2021.
This study focused on the Credit Management Practices of HELP
Incorporated. The data collection conducted in 30 Debtors/Creditors of HELP
Incorporated A.Y. 2020-2021 who represented the respondents.
This study did not cover other problems that are not considered as one of
the 5C's model of Credit. The other employee which not fall to employees of
HELP Incorporated are not within the scope of this research.
The study is done through utilization of questionnaire to the employees as
a survey and reference. By their strategy the researchers are able to know the
Credit Management Practices of Help Entrepreneur Launch Plentitude
Foundation (HELP) Incorporated in Morong Rizal
Significance of the Study
18
The researchers believed that the research will be a great help to the
following person(s):
To HELP Incorporated. To lower late payment, reduce Days Sales
Outstanding (DSO), and improve cash flow for other investment and acquisitions.
To the Debtors. To know if HELP Incorporated have good credit terms
and policy.
To the Investors. To evaluate the viability of investing in the institution.
To the University. This study will serve as a source for credit
management practices discussions and research reference.
To the Future Researchers. This research study will serve as a basis
and reference for future researchers undergoing the same nature of study.
Definition of Terms
The following terms were defined operationally and conceptually for
further
understanding of the study:
Capital. It represents the accumulated wealth of a business, represented
by its assets les liabilities.
Collateral. is an asset or piece of property that a borrower offers to a
lender as security for a loan.
19
Conditions. It is a legally binding contract between the business and the
debtors.
Credit Management. is the process of granting credit, setting the terms
it's granted on, recovering this credit when it's due, and ensuring compliance with
company credit policy, among other credit related functions.
Credit. the ability of a customer to obtain goods or services before
payment, based on the trust that payment will be made in the future.
Creditor. a person or company to whom money is owed.
Debt. something, typically money, that is owed or due.
Feedback. information about reactions to a product, a person's
performance of a task, etc. which is used as a basis for improvement.
Financing Company. an organization that makes loans to individuals and
businesses.
HELP Incorporated. Help Entrepreneurs Launch Plentitude Foundation
Incorporated is a lending institution based in Morong, Rizal which will be the
subject or object of the study by the researcher
Investor. a person or organization that puts money into financial plans,
property, etc. with the expectation of achieving a profit.
Lending Company. engaged in granting loans from its own capital funds
or from funds sourced
20
Life-blood. the indispensable factor or influence that gives something its
strength and vitality.
Loan. a form of debt incurred by an individual or other entity.
Morong, Rizal. It is the place where HELP Incorporated is located and
where the study will be conducted by the researcher.
Small and Medium Enterprises (SME). are businesses that maintain
revenues, assets or a number of employees below a certain threshold. Each
country has its own definition of what constitutes a small and medium-sized
enterprise.
21
Chapter 2
METHODOLOGY OF RESEARCH AND SOURCES OF DATA
This chapter includes the methodology of research and sources of data.
Specifically, the researchers will outline the research method, setting of the
study, subject of the study, sources of data, statistical treatment and research
procedure.
Research Method
The researchers utilized the descriptive method of research in interpreting
and analyzing the findings of the study to help them identify the credit
management practices of Help Entrepreneurs Launch Plentitude Foundation
(HELP) inc. in Morong, Rizal. The researchers gathered information from the
respondents by conducting a survey by the form of questionnaires.
Descriptive research is defined as a research method that describes the
characteristics of the population or phenomenon studied. This methodology
focuses more on the “what” of the research subject than the “why” of the
research subject.
22
The descriptive research method primarily focuses on describing the
nature of a demographic segment, without focusing on “why” a particular
phenomenon occurs. In other words, it “describes” the subject of the research,
without covering “why” it happens.
The term descriptive research then refers to research questions, design of
the study, and data analysis conducted on that topic. We call it an observational
research method because none of the research study variables are influenced in
any capacity (QuestionPro, 2020).
Descriptive research can be explained as a statement of affairs as they
are at present with the researcher having no control over variable. Moreover,
“descriptive studies may be characterized as simply the attempt to determine,
describe or identify what is, while analytical research attempts to establish why it
is that way or how it came to be” (Ethridge, D.E., 2004).
Descriptive research is “aimed at casting light on current issues or
problems through a process of data collection that enables them to describe the
situation more completely than was possible without employing this method.”
(Fox, W. & Bayat, 2007).
This is the most applicable method for this research because the
researchers will conduct a survey. Surveys are a popular research tool to collect
feedback from respondents. And to gather a useful data should have the right
survey questions. This will help them gathering and collecting data they need in
order to know the credit management practices of HELP in Morong, Rizal.
23
Setting of the Study
The study was conducted in Morong, Rizal. Morong, officially the
Municipality of Morong, is a 2nd class municipality in the province of Rizal,
Philippines. According to the 2015 census, it has a population of 58,118 people.
Morong was considered the province before it was called Rizal. Its original name
was Politico Militar Distrito de Morong, which included the towns that make up
present-day Rizal province.
Morong is situated along the coastal plains of Laguna De bay and is
nested by the foothills of the Sierra Madre Mountains. Geographically, it is
located at 124°57’ longitude and at 140°50’ latitude, and occupies a land area of
4,856 hectares orb48.56 square kilometers. It is bounded on the north-northeast
by Baras, east-southeast by Tanay and Laguna de Bay south by Cardona, west-
southwest by Binangonan and west by Angono and north by Teresa.
From a group of individuals whose common goal is to help alleviate
poverty in the rural areas. face with the reality of life that poverty besets a lot of
society today, the group who were formed out of friendship and camaraderie in
workplace courageously went out of their comfort zone of being workers to
becoming leaders and co-founders of an organization that will bring change to
the community where they will make themselves present. Hence, HELP INC was
born.
24
After a through thinking of the group, HELP Inc. was officially registered to
Securities and Exchange Commission on June 29, 2006 and was formally
launched in July 3, 2006. It has its first branch at Morong, Rizal.
Subject of the Study
The subject of the study was the HELP Inc., that engaged in lending
industry. HELP Inc., were specialized service providers run by the creditors who
serve business clients by lending money. They can also select to focus their
services on a specific market, such as small businesses or small-scale
businesses.
The subject of the study helped the researchers to determine and evaluate
the credit management practices of HELP Inc. in Morong, Rizal.
Sources of Data
There were two sources of data in the study, the primary and the
secondary data.
The primary sources of data were derived from the questionnaire that was
answered by the employees and clients of HELP Inc. in Morong, Rizal.
In gathering the necessary data, the questionnaire-checklist was
composed of three parts, first part deal with the profile of the respondents, the
second part contains of the profile of the business organization, while the third
part contains the questionnaire-checklist which was divided into credit
management practices namely; character, capacity, capital, collateral and
condition.
25
The secondary data was derived from the interview, conducted by the
researchers regarding to the credit management practices of HELP Inc. in
Morong, Rizal.
Research Procedure
The researchers constructed the chapter 1 of the study which consists of
introduction, statement of the problem and its background, scope and
delimitation of the study, as well as the theoretical framework and the conceptual
framework that was presented to their research instructor for checking. The
research instructor gives his comments and suggestions regarding the study.
Right after that, the researchers made the revisions for their paper considering all
the comments and advices given by their instructor.
Second, the researchers constructed the chapter 2 of the study which
consist of research method, setting of the study, subject of the study, sources of
data, research procedure, and statistical treatment respectively. The researchers
will develop questions and prepare a letter for the permission to gather the
information needed. The questionnaires will be distributed to the employees of
Help Entrepreneurs Launch Plentitude Foundation Inc. in Morong, Rizal.
After that, the researchers were proceeded to data gathering. To gather
accurate and objective data that was used in this study, the researchers have
primary and secondary sources of data. The researchers were also made sure
that the data of respondents provided will be handled with utmost confidentiality.
After collecting the needed information, the researchers will proceed to the
26
construction of Chapter 3 which includes presentation, analysis and interpretation
of data and Chapter 4 which includes summary of findings, and conclusions.
They will also give recommendations for the beneficiaries of this study that will
help them.
Lastly, finalization and correction will be made for the whole research
paper for the submission as compliance with the course curriculum.
Statistical Treatment
The data that was collected in this study were subject to certain statistical
treatments. The data was encoded, tallied, and tabulated for better presentation
and interpretation of the results. The researchers were used the following
statistical instruments to analyze and to interpret the data that will be gathered:
1. Frequency and Percentage
To determine the profile of the respondents in terms of age, sex, years of
employment and the respondents’ perception on the Credit Management
Practices of Help Entrepreneurs Launch Plentitude Foundation Inc. in Morong,
Rizal.
The percentage of each item was computed by dividing it with the sample
total number of respondents who will answer the survey. The formula that will
use in the application of this technique was:
% = (f/n) x 100
where:
% = percentage
f= frequency
n= total sample
27
2. Weighted Mean
Weighted mean and rank distribution will be used in order to determine the
profile of the respondents, and the respondents’ perception on the Credit
Management Practices of Help Entrepreneurs Launch Plentitude Foundation Inc.
in Morong, Rizal.
It is a kind of average where instead of each data point contributing
equally to the final mean, some data points contribute more “weight” than others.
Weighted means are very common in statistics, especially when studying
populations. The formula used in application of this technique was:
Weighted Mean = wx/w

where:
x= The sum of
w = weights
v= value
Degree of respondents’ perception

on the Credit Management Practices
Qualitative
Scale Range of Help Entrepreneurs Launch
Description
Plentitude Foundation in Morong,
Rizal
80-100
4.20-
5 implementation or Always Practiced
5.00
practiced
3.40-
4 60-79 Frequent Practiced
4.19
2.60-
3 40-59 Sometimes Practiced
3.19
1.80-
2 20-39 Seldom Practiced
2.59
1.00-
1 0-19 Never Practiced
1.79
28
In order to interpret the means, the Likert Scale below was used:
Figure 2
The Five-Point Likert Scale
The Likert Scale was used to interpret items in the questionnaire. These
responses will be based on the respondents’ profile, and the respondents’
perception on the Credit Management Practices of Help Entrepreneurs Launch
Plentitude Foundation Inc. in Morong, Rizal.
29
CHAPTER 3
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter presents the analysis, presentation and interpretation of data
gathered from the questionnaires distributed to Help Entrepreneur Launch
Plentitude Foundation Inc. in Morong, Rizal.
The findings of the survey are presented through the use of table and
interpreted in the light of its implication to study.
Profile of the Respondents in terms of the selected variables
Table 1 shows the frequency, percentage and rank distribution of the
respondents’ profile in terms of age.
Table 1
Frequency, Percentage and Rank Distribution of the

Respondents’ Profile in terms of Age
Age Frequency Percentage Rank
Below 25 8 47.1 1
26-31 5 29.4 2
32-37 2 11.8 3.5
38-43 2 11.8 3.5
No Responses 3
Total 20 100
It can be seen that among 20 respondents, 8 or 47.1 percent age below
25 years old got the first rank, second rank with a frequency 5 or 29.4 percent of
them belong to the age bracket of 26-31 years old. And lastly, third in the rank
are tie were 32-37 and 38-43 years old with a frequency and percentage of 2 and
30
11.8 percent, respectively. There are 3 respondents who did not comply to
answer in terms of age.
It could be concluded that 5 out of 10 of the respondents belong to the age
bracket of below 25, which only implies that the respondents are on the right age
to manage their credit and finances.
Research shows that age diversity in the workplace can improve
organizational performance. Studies also show that productivity in both older and
younger workers is higher in companies with mixed-age work teams. And age
diversity within work teams is positively related to performance when groups are
involved in complex decision-making tasks (A.R. Mazzotta, 2018).
respondents’ profile in terms of sex.
Table 2

Respondents’ Profile in terms of Sex
Sex Frequency Percentage Rank
Male 10 58.8 1
Female 7 41.2 2
No response 3
Total 20 100
Table 2 shows that there were 10 or 58.8 percent of the respondents are
male and rank first, while 7 or 41.2 percent are female who rank second. There
are 3 respondents who did not comply to answer in terms of sex.
31
It implied that 6 out of 10 of the respondents are male. Because males are
engaged and fit in budgeting their credit and finances.
Having both women and men in your teams means you benefit from the
different points of view and approaches that come from different life experiences.
A multiplicity of perspectives can spark creativity and innovation, and help
organizations spot and seize new opportunities. It can also encourage
organizations to challenge gender stereotypes (Rossa Brown, 2018).
respondents’ profile in terms of civil status.
Table 3

Respondents’ Profile in terms of Civil status
Civil status Frequency Percentage Rank
Single 16 94.1 1
Married 1 5.9 2
No Response 3
Total 20 100
It presented that those respondents who are single rank first with 16 or
94.1 percent then married respondent with 1 or 5.9 percent rank second. And
lastly, the widow and separated had no respondents. There are 3 respondents
who did not comply to answer in terms of civil status.
It implied that great majority of the respondents were single individuals
who were more eager and motivated to provide the need of their family.
32
Credit risk, if correctly identified and managed, can be leveraged as a
strategic opportunity. Through effective credit risk management your business is
able to greatly improve overall performance and secure a competitive advantage
(Marisit.com, 2019).
respondents’ profile in terms of educational attainment.
Table 4

Respondents’ Profile in terms of Educational Attainment
Educational Frequency Percentage Rank
Attainment
College level 2 11.8 2
College Graduate 15 88.2 1
No Response 3
Total 20 100
It shows that 15 or 88.2 percent of respondents were college graduates
who rank first. Second in the rank were college level with a frequency of 2 or 11.8
percent and lastly, high school graduates had no respondents. There are 3
respondents who did not comply to answer in terms of educational attainment.
This depicts that 8 out of 10 respondents were college graduate who were
qualified to lend or borrow money in lending institution. They were already
acquired with knowledge on how to handle risks and control risks on their
everyday life.
As an employer or hiring manager, there are a lot of things you take into
consideration when looking for a new employee. You want to be sure they can
33
get the job done and even surpass your expectations. You want to be sure that
they fit in with most of the people that are already employed and mesh into your
company culture. Lastly, you want to be sure they are taking this job for the long-
run. At the very least you expect them to stay with the company for at least two
years. So, in the process of looking for all of these things, the educational
background and past work experiences of your top candidates is bound to come
up (Nicole Nicholson, 2018).
respondents’ profile in terms of years in service.
Table 5
Frequency, Percentage and Rank Distribution of the Respondents’

Profile in terms of Years in Service
Years Frequency Percentage Rank
Below 3 years 8 47% 1
3.01 – 5 years 1 5.9% 4.5
5.01 – 7 years 2 11.8% 3
7.01 – 9 years 1 5.9% 4.5
9.01 – Above 5 29.4% 2
No Response 3
Total 20 100%
It shows that 8 or 47 percent of the respondents are below 3 years in their
occupation who rank first, second is 9.01 years and above with a frequency of 5
or 29.4 percent. Third in the rank were in the years of 5.01 – 7 years with a
frequency of 2 or 11.8 percent and lastly those employees who are in the
institution in the years of 3.01 – 5 years and 7.01 – 9 years with a frequency of 1
34
or 5.9 percent. There are 3 respondents who did not comply to answer in terms
of service.
This depicts that 5 out of 10 of the respondents were below 3 years in
service.
Regular employees tend to be loyal to their jobs since their job is secured.
This helps boost their work performance and improve the quality of their products
and services. Investing by giving them training is a wise decision
(readysethired.com, 2019).
respondents’ profile in terms of Position.
Table 6

Respondents’ Profile in terms of Position
Frequency Percentage Rank
Position
Manager 1 5.9 3.5
Accounting Staff 11 64.7 1
Loan Officer 1 5.9 3.5
Department Head 2 11.8 2
Management in 1 5.9 3.5
System
MIS audit assistant 1 5.9 3.5
No Response 3
Total 20 100
It shows that 11 or 64.7 percent of the respondents were accounting staff
who rank first. Second in the rank were department head with a frequency of 2 or
11.8 percent and lastly, the third rank are tie were manager, loan officer,
management system and MIS audit in System with frequency of 1 or 5.9 percent.
35
The book keeper and collector had no respondents. There are 3 respondents
who did not comply to answer in terms of position.
It implies that 6 out 10 of the respondents were accounting staff. They
were already acquired with knowledge on how to handle risks and control risks
on their everyday life.
As stated by Alison Doyle (2021) A job title is a term that describes in a
few words or less the position held by an employee. Depending on the job, a job
title can describe the level of the position or the responsibilities of the person
holding the position. Employers use job titles to categorize positions in their
organization. A company's organization chart will show all the positions in the
company, listed by job title, the reporting structure, and company management
(Alison Doyle, 2021).
respondents’ profile in terms of status of employment.
Table 7

Respondents’ Profile in terms of Status of Employment
Status of Frequency Percentage Rank
Employment
Regular 14 82.4 1
Casual 3 17.6 2
No Response 3
Total 20 100
It shows that 14 or 82.4 percent of the respondents were regular who rank
first. And lastly, the second in the rank were casual with a frequency of 3 or 17.6
36
percent. There are 3 respondents who did not comply to answer in terms of
status of employment.
It implies that 8 out of 10 of the respondents were regular. It implied that
great majority of the respondents were regular who were more eager and
motivated to provide the need of their family.
Being a permanent employee comes with many benefits. In addition to
getting a steady paycheck and job security, permanent employees enjoy
advantages such as health insurance, retirement savings plans and paid time off.
While the kind of benefits you receive as a permanent employee differ from
company to company, knowing you have a steady job brings a kind of peace of
mind you can’t get from contract or freelance positions (Anam Ahmed, 2020).
Respondents’ Perception on the Credit Management Practices of Help

Entrepreneurs Launch Plentitude Foundation (HELP) Incorporated in
Morong, Rizal
Table 8 present the computed weighted mean, rank and its verbal
interpretation on Credit Management Practices of Help Entrepreneurs Launch
Plentitude Foundation (HELP) Inc. in Morong, Rizal Calendar Year 2020-2021 as
perceived by the respondents in terms of Character.
37
Table 8
Obtained Mean of the Respondents’ Perception of the Credit Management
Practices of Help Entrepreneurs Launch Plentitude Foundation
(HELP) Inc. in Morong, Rizal with regards to Character
Character Mean Scale Verbal

Interpretation
1. Conduct background investigation. 4.2 5 Always Practiced
2. Determine past credit experience. 4.7 5 Always Practiced
3. Evaluate the borrower’s credit risk. 4.7 5 Always Practiced
GRAND MEAN 4.5 5 Always Practiced
Data show that most items in terms Character are interpreted as “Always
Practiced” with a scale of 5. In general, the respondents perceived the Credit
Management Practices of Help Entrepreneurs Launch Plentitude Foundation
(HELP) Inc. in Morong, Rizal Calendar Year 2020-2021 as perceived by the
respondents in terms of Character as Always Practiced with obtained grand
mean of 4.5.
This implies that Credit Management Practices of Help Entrepreneurs
Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal in terms of Character
is Always Practiced.
38
Although it's called character, the first C more specifically refers to credit
history: a borrower's reputation or track record for repaying debts. This
information appears on the borrower's credit reports. Information from these
reports helps lenders evaluate the borrower's credit risk. Many lenders have a
minimum credit score requirement before an applicant can be eligible for a new
loan approval. Minimum credit score requirements will vary from lender to lender
and from one loan product to the next. The general rule is the higher a borrower's
credit scores, the higher the likelihood of receiving an approval. Lenders also
regularly rely upon credit scores as a means for setting the rates and terms of
loans. The result is often more attractive loan offers for borrowers who have
good-to-excellent credit (Troy Segal, 2021).
perceived by the respondents in terms of Capacity.
Table 9
(HELP) Inc. in Morong, Rizal with regards to Capacity
Capacity Mean Scale Verbal

Interpretation
1. Evaluate the borrower’s ability to 4.5 5 Always Practiced
pay.
2. Assign the credit limit of the 4.7 5 Always Practiced
customers
3. Require declaration of purpose of 4.6 5 Always Practiced
39
loan availment.
Data show that most items in terms Capacity are interpreted as “Always
respondents in terms of Capacity as Always Practiced with obtained grand mean
of 4.6.
Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal in terms of Capacity
is Always Practiced.
(DTI) ratio. Lenders calculate DTI by adding together a borrower's total monthly
debt payments and dividing that by the borrower's gross monthly income. The
lower an applicant's DTI, the better the chance of qualifying for a new loan. Every
lender is different, but many lenders prefer an applicant's DTI to be around 35%
or less before approving an application for new financing. In addition to
examining income, lenders look at the length of time an applicant has been
employed at their current job and future job stability (Troy Segal, 2021).
40
perceived by the respondents in terms of Capital.
Table 10
(HELP) Inc. in Morong, Rizal with regards to Capital
Capital Mean Scale Verbal

Interpretation
1. Require proof of family income and 4.8 5 Always Practiced
expenditures.
2. Obtain proof of customers capital. 4.8 5 Always Practiced
3. Creditors use customer capital as an 4 4 Frequent Practiced

additional means to repay the debt
obligations.
Data show that most items in terms Capital are interpreted as “Always
respondents in terms of Capital as Always Practiced with obtained grand mean of
4.5.
41
Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal in terms of Capital is
Always Practiced.
According to Troy Segal (2021) Lenders also consider any capital the
borrower puts toward a potential investment. A large contribution by the borrower
decreases the chance of default. Borrowers who can place a down payment on a
home, for example, typically find it easier to receive a mortgage. Down payment
size can also affect the rates and terms of a borrower's loan. Generally speaking,
larger down payments result in better rates and terms. With mortgage loans, for
example, a down payment of 20% or more should help a borrower avoid the
requirement to purchase additional private mortgage insurance (PMI) (Troy
Segal, 2021).
perceived by the respondents in terms of Collateral.
Table11
(HELP) Inc. in Morong, Rizal with regards to Collateral
Collateral Mean Scale Verbal

Interpretation
1. Require collateral to avail the loan. 3.7 4 Frequent Practiced
42
2. Sell’s collateral upon default after 3.3 4 Frequent Practiced
considerable period.
3. Prefers the most liquid 3.3 4 Frequent Practiced
collateral/assets as collateral such as
financial securities, stocks, bonds.
GRAND MEAN 3.4 4 Frequent Practiced
Data show that most items in terms Collateral are interpreted as “Frequent
respondents in terms of Collateral as Frequent Practiced with obtained grand
mean of 3.4.
Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal in terms of Collateral
is Frequent Practice.
assurance that if the borrower defaults on the loan, the lender can get something
back by repossessing the collateral. Often, the collateral is the object one is
borrowing the money for: Auto loans, for instance, are secured by cars, and
mortgages are secured by homes. For this reason, collateral-backed loans are
sometimes referred to as secured loans or secured debt. As a result, loans that
are secured by some forms of collateral are commonly offered with lower interest
rates and better terms compared to other unsecured forms of financing (Troy
Segal, 2021).
43
perceived by the respondents in terms of Condition.
Table 12
(HELP) Inc. in Morong, Rizal with regards to Condition
Condition Mean Scale Verbal

Interpretation
1. Reminds the borrower of their past 4.8 5 Always Practiced
due accounts.
2. Impose penalty for late payments. 3.5 4 Frequent Practiced
3. Offer a loan restructuring program 3.7 4 Frequent Practiced

for delinquent borrowers.
GRAND MEAN 4 4 Frequent Practiced
Data show that most items in terms Condition are interpreted as “Frequent
respondents in terms of Condition as Frequent Practiced with obtained grand
mean of 4.
44
Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal in terms of Condition
is Frequent Practiced.
principal, influence the lender's desire to finance the borrower. Conditions can
refer to how a borrower intends to use the money. Consider a borrower who
applies for a car loan or a home improvement loan. A lender may be
more likely to approve those loans because of their specific purpose, rather than
a signature loan, which could be used for anything. Additionally, lenders may
consider conditions that are outside of the borrower's control, such as the state of
the economy, industry trends, or pending legislative changes (Troy Segal, 2021).
Table 13
Composite Table of the Credit Management Practices of Help
(HELP) Inc. in Morong, Rizal
Credit Management Mean Rank Verbal Interpretation

a. Character 4.5 2.5 Always Practiced
b. Capacity 4.6 1 Always Practiced
c. Capital 4.5 2.5 Always Practiced
d. Collateral 3.4 5 Frequent Practiced
e. Condition 4 4 Frequent Practiced
45
Average 4.2
Table 13 shows the composite table of the credit management practices of
Help Entrepreneurs Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal.
It can be gleaned from the table that capacity ranked first with a weighted mean
of 4.6 respectively and obtained a verbal interpretation of Always Practiced.
Character and Capacity were in rank 2.5 with a weighted mean of 4 5 interpreted
as Always Practiced. Collateral ranked fourth with a weighted mean of 4
interpreted as Always Practiced. Lastly, collateral obtained 3.4 weighted mean
and interpreted as Frequent Practiced.
It implies that Help Entrepreneurs Launch Plentitude Foundation (HELP) Inc.
measure the capacity of the clients to pay for the loan lent by the company.
46
TRAINING PROGRAM
I. TRAINING PROGRAM: CREDIT MANAGEMENT PRACTICES OF HELP

ENTREPRENEURS LAUNCH PLENTITUDE FOUNDATION INC. IN
MORONG, RIZAL
II. PROPONENT AND MANHOUR REQUIREMENT
PROPONENTS MANHOUR %
Amiel P. Marasigan 33 33%
Cyruse C. Liwanag 34 34%
Bencel John T. Reyta 33 33%
Total number of hours 100 hours 100%
III. RATIONALE
Credit is the source of life of a successful company, without credit in the
economy, many companies would not be existing today. And stating up a
business would require a lot of capital and for it to happen businesses would get
credit in different lending institutions. Many businesses find it challenging to
properly evaluate and track the creditworthiness of new customers. And when
conducting business with foreign customers, customer risk management
becomes even more complex because it can be difficult to interpret and rely on
information used by foreign countries to measure creditworthiness.
Based on the study conducted, there is a gap that needed to improve on
the Collateral Variable of HELP Inc. but their policy of access has the highest
result. The employees encountered a problem with regards to client availability to
pay, sell’s collateral upon default after considerable period that results to not
have a security for the lenders to lend their money as means for their income of
HELP INC.
47
The aim of this training program is to provide a clear understanding about
the credit management practices and enlighten the employees of HELP Inc. on
how they enhance their credit management practices and improve their financial
performance.
IV. TARGET PARTICIPANTS

The target participants of this training program will be all the employees of
Help Entrepreneurs Launch Plentitude Foundation Inc. in Morong Rizal.
Branch location Number of employees

Morong Head office 20
Total 20
V. TRAINING OBJECTIVES
A. General Objectives
To determine the Credit Management Practices of HELP Inc. in
Morong, Rizal
B. Specific Objectives
1. To determine the credit practices of the company.
2. To assess the effect of credit management practices of the
company.
3. To review the system of the company for credit management.
VI. SCOPE AND DURATION OF TRAINING

A. Scope of Training
The focus of this training program is employees and customers of
Help Entrepreneurs Launch Plentitude Foundation Inc. and
enhancing the Incorporation’s credit management practices
48
B. Duration
The training program will start on June 1, 2021 and will end on
August 30, 2021. However, the actual training is a 2 days seminar.
VII. COOPERATING AGENCIES

1. Municipality of Morong, Rizal
2. Help Entrepreneurs Launch Plentitude Foundation Inc. in
Morong, Rizal
3. University of Rizal System
4. College of Accountancy – URS
VIII. METHODOLOGY
A. Implementation Strategy
a) The training program will be recommended to the city
authorities who are involved.
b) Actual training will be held through google meet, the link will
be provided one (1) day before the scheduled training.
c) There will be modules, online references, and other learning
material provided for further understanding.
d) There will be an evaluation of participants knowledge and
skills from the training.
B. Training Curriculum
Delivery
Title Learning Hours Method/ Reviewer
Objective Materials
49
Fundamentals  Assess the real 1.5 Training will Extensionists
of Corporate market condition by be conducted
Credit the credit though
professionals. google meet,
 To improve credit the link will be
management of the provided
company Learning
 Assess cash flow and materials will
credit implications be provided.
Principle of  To have an efficient 2 . Training will Extensionists

Credit cash flow be conducted
Management  To help the company though
Practices in safeguarding the google meet,
client's risk the link will be
provided
Learning
materials will
be provided.
Credit Risk  Understand the of 2 Training will Extensionists
Management risks associated in be conducted
lending though
 To help the managers google meet,
and employees to the link will be
analyze and evaluate provided
the risks Learning
 Reduce and Eliminate materials will
Harmful Threats be provided.
Collateral  To evaluate the clients 2 Training will Extensionists
Policy in granting the loan. be conducted
 To protect the firm though
from losses arising google meet,
from client's default the link will be
provided
Learning
materials will
be provided.
50
C. Training Roadmap
The training schedule will continue to evolve as the project progresses

and additional details become available.
Date Venue Target Activity Persons Involved
Via e-mails and  Local

May – July 2021 phone calls Communication Government of
with HELP in Morong, Rizal
Morong, Rizal  HELP Inc.
Top management
 Government of
June 2021 Via google meet Training Program Morong, Rizal
orientation  HELP Inc.
Faculty
July 2021 Via google meet Training on Beneficiaries
Fundamentals of Proponents
Corporate Credit
July 2021 Through an Evaluation on Faculty

online Training on Beneficiaries
assessment via Fundamentals of Proponents
google forms Corporate Credit
51
July 2021 Through an Training on Faculty
online Principle of Credit Beneficiaries
assessment via Management Proponents
google forms Practices
Faculty
July 2021 Via google meet Evaluation on Beneficiaries
Training on
Principle of Credit Proponents
Management
Practices
July 2021 Through an Training Credit Faculty
online Risk Management Beneficiaries
assessment via Proponents
google forms
July 2021 Via google meet Evaluation on Faculty

Training Credit Beneficiaries
Risk Management Proponents
July 2021 Through an Evaluation on Faculty

online Training on Beneficiaries
assessment via Collateral Policy Proponents
google forms
July 2021 Via google meet Training on Faculty

Collateral Policy Beneficiaries
Proponents
July 2021 Evaluation of Beneficiaries
Overall Training Proponents
Program
D. Phases of Development
Phases of Activity Target Date Target Activity People Involved
Finalizing the May-July 2021 Planning and Proponents

training plan Preparation for the
Training Program
52
Communication with Local Government
Local Government of Morong, Rizal
of Morong, Rizal
HELP Inc. in
and HELP Inc., in
Morong, Rizal
Morong, Rizal
Beneficiaries
Proponents
Preparation and Proponents

confirmation of
seminar modules,
supplies, and
program of
activities.
Estimate duration of Proponents
training and
outlining training
schedule
Launching of Faculty
extension program
Beneficiaries
Proponents
Training of July 2021 Faculty

Beneficiaries Training on
Fundamentals of Beneficiaries
Corporate Credit
Proponents
Evaluation on Faculty
Training on
Fundamentals of Beneficiaries
Corporate Credit Proponents
Faculty
Training on
Principle of Credit Beneficiaries
Management
Proponents
Practices
Training on
Principle of Credit Beneficiaries
53
Management Proponents
Practices
Faculty
Training Credit Risk
Management Beneficiaries
Proponents
Training Credit Risk
Management Beneficiaries
Proponents
Training on
Collateral Policy Beneficiaries
Proponents
Training on Faculty
Collateral Policy
Beneficiaries
Proponents
Evaluation of Faculty
Overall Training
Program Beneficiaries
Proponents
Post-training August 2021 Closing ceremonies HELP Inc. in
Activities for training program Morong, Rizal
Faculty
Beneficiaries
Proponents
Measurement and Proponents
overall evaluation of
extension outputs
and outcomes
Preparation of Proponents
terminal report
IX. TRAINING EVALUATION
54
In evaluating the effectiveness of training delivery, information will be
sourced from the following areas:
 The outcomes of the evaluation test completed by the participants/trainee
by the end of each lesson.
 There will be an overall evaluation of training program to be completed by
participants.
 Feedbacks from trainees on confidence level by the end of each module.
 Feedbacks from trainers on training problems or individual who have
experienced learning difficulties.
55
CHAPTER 4
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This chapter presents the summary of findings based on the analysis of
the presented data, the conclusion drawn and the advance recommendations
that have been formulated for the study. The features are as follows: Credit
(HELP) Inc. in Morong, Rizal.
Summary of Findings
From the gathered data, analyzed, and interpreted in the previous
chapters, the researchers formulated the following summary of findings;
1. Profile of the Respondents in terms of:
1.1. Age of Respondents. It could be concluded that 5 out of 10 of the
respondents belong to the age bracket of below 25, which only implies
that the respondents are on the right age to manage their credit and
finances.
1.2. Sex of Respondents. It implied that 6 out of 10 of the respondents are
male. Because males are engaged and fit in budgeting their credit and
finances.
1.3. Civil Status of Respondents. It implied that great majority of the
respondents were single individuals who were more eager and motivated
to provide the need of their family.
56
1.4. Educational Attainment of Respondents. It depicts that 8 out of 10
respondents were college graduate who were qualified to lend or borrow
money in lending institution. They were already acquired with knowledge
on how to handle risks and control risks on their everyday life.
1.5. Years of Service of Respondents. It depicts that 5 out of 10 of the
respondents were below 3 years in service.
1.6. Position of Respondents. It implies that 6 out 10 of the respondents were
accounting staff. They were already acquired with knowledge on how to
handle risks and control risks on their everyday life.
1.7. Status of Employment of Respondents. It implies that 8 out of 10 of the
respondents were regular. It implied that great majority of the
respondents were regular who were more eager and motivated to provide
the need of their family.
2. Respondents’ Perception on the Credit Management Practices of Help
Entrepreneurs Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal in
terms of:
2.1. Character. Data show that most items in terms Character are interpreted
as “Always Practiced” with a scale of 5. In general, the respondents
perceived the Credit Management Practices of Help Entrepreneurs
Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal Calendar
Year 2020-2021 as perceived by the respondents in terms of Character
as Always Practiced with obtained grand mean of 4.5.
57
Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal in terms of
Character is Always Practiced.
2.2. Capacity. Data show that most items in terms Capacity are interpreted as
“Always Practiced” with a scale of 5. In general, the respondents
Year 2020-2021 as perceived by the respondents in terms of Capacity as
Always Practiced with obtained grand mean of 4.6.
Capacity is Always Practiced.
2.3. Capital. Data show that most items in terms Capital are interpreted as
“Always Practiced” with a scale of 5. In general, the respondents
Year 2020-2021 as perceived by the respondents in terms of Capital as
Always Practiced with obtained grand mean of 4.5.
Capital is Always Practiced.
2.4. Collateral. Data show that most items in terms Collateral are interpreted
as “Frequent Practiced” with a scale of 4. In general, the respondents
58
Year 2020-2021 as perceived by the respondents in terms of Collateral as
Frequent Practiced with obtained grand mean of 3.4.
Collateral is Frequent Practice.
2.5. Condition. Data show that most items in terms Condition are interpreted
as “Frequent Practiced” with a scale of 4. In general, the respondents
Year 2020-2021 as perceived by the respondents in terms of Condition as
Frequent Practiced with obtained grand mean of 4.
Condition is Frequent Practiced.
3. Training Program. Credit management practices program is a 3 days program
that provides proper trainings for an improved Credit Management Practices
focusing on 5c’s of credit. It tends to develop and increase the knowledge and
skills of employees and clients for effective credit management. This training
will revolve in organization of training webinar, provision of trainees’ materials
including workbook and modules and other instructional technique.
59
Beneficiaries will then be evaluated through their output and will be given a
pre-test and post-test to determine the knowledge they acquired.
Conclusions
Based on the summary of findings, presentation, analysis, and interpretation of
data, the researchers arrived at the following conclusions;
1. Based on the findings, the researchers conclude that the respondents from
HELP Inc., belongs to the ages below 25, mostly male and majority of single
individuals that fits to the college graduate. Hence, the respondents are
commonly 3 years in service, goes as regular accounting staff to the HELP
Inc.
2. With respect to the respondents’ perception on the credit management
practices of HELP Inc., in terms of character, capacity and capital, the results
interpret as always practiced. Majority in collateral and condition obtained a
verbal interpretation of frequent practiced. It implies that the firm implements
good credit management practices.
3. Based on the findings, the researchers conclude that the training program
focused more on the least result of the respondents of HELP Inc. Aside from
credit management matters, it focused on Collateral and condition part of
credit management practices.
Recommendation
From the gathered information, the researchers have formulated the
following recommendations;
60
1. The study that the main factors influencing access to credits are stringent
policies, client history and cash flows of clients. It is therefore recommended
that the policy of access should be flexible so that creditors can easily access
credits.
2. The study found that the minor factors influencing access to credit are the
collateral and the restructuring program for delinquent borrowers. The
researchers recommend that the management not rely only client history and
cash flows but should also look at the availability of the client to acquire
collateral to support their loans.
3. To future researchers who will study similar to this paper, the researchers
suggests that they more focus on the result which is low where they help the
business in developing and improving the business organization by having a
training program which related to their nature.
61
BIBLIOGRAPHY
INTERNET REFERENCES
Customer Credit Control & Management Procedures. Retrieved from:
https://www.eulerhermes.com/en_US/insights/customer-credit-
management-techniques.html
Effect Of Credit Management Practices On The Performance Of Small And
Medium Enterprises In The Transport And Logistics Industry In Nairobi,
Kenya. Retrieved from:
http://erepository.uonbi.ac.ke/handle/11295/97595
Credit Risk Management Process, Best Practices & Techniques. Retrieved from:
https://www.gdslink.com/credit-risk-management-process-best-practices-
techniques/#:~:text=Implementing%20a%20credit%20risk%20manageme
nt,crafting%20a%20risk%20assessment%20solution
Credit risk management principles, tools and techniques. Retrieved from:
https://www.theglobaltreasurer.com/2019/02/07/credit-risk-management-
principles-tools-and-techniques/
Five Cs of Credit. Retrieved from:
https://www.investopedia.com/terms/f/five-c-credit.asp
Credit and Collection Management Practices, Credit Risk Management, and
Financial Performance of Private Higher Educational Institutions (HEIs) in the
Philippines: Basis for Continuous Improvement. Retrieved from:
https://www.researchgate.net/publication/342778867_Credit_and_Collecti
on_Management_Practices_Credit_Risk_Management_and_Financial_Pe
62
rformance_of_Private_Higher_Educational_Institutions_HEIs_in_the_Phili
ppines_Basis_for_Continuous_Improvement
3 Reasons Why Age Diversity in the Workplace is Important. Retrieved From:
https://www.armazzotta.com/blog/2018/07/10/3-reasons-why-age-
diversity-in-the-workplace-is-important/
7 benefits of gender diversity in the workplace. Retrieved From:
https://www.workplace.com/blog/diversity-in-the-workplace
The importance of credit risk management. Retrieved From:
https://www.marisit.co.za/the-importance-of-credit-risk-management/
Educational Background vs. Experience: What is Most Important?. Retrieved
From:
https://hr.sparkhire.com/human-resources-news/educational-background-
vs-experience-what-is-most-important/
Advantages and Disadvantages: Short Term vs Long Term Employment.
Retrieved From:
https://readysethired.com.au/blog/advantages-and-disadvantages-short-
term-vs-long-term-employment
Advantages of Permanent Employment. Retrieved From:
https://work.chron.com/advantages-permanent-employment-8921.html
63
APPENDICES
APPENDIX A
64
Gantt Chart of Activities
Activities Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June
Formulation of
research title
Choosing of Title
Searching for
Research Adviser
Gathering of Data
for Chapters 1 and
2
Development of
Chapters 1 and 2
Colloquium
Revision of
Chapters 1 and 2
Validation of
questionnaire
checklist
Conduct of the
actual test
Computation and
Interpretation of
gathered data
Formulation of
Findings,
Conclusion and
Recommendation
and Training
Program
Final Defense
Revision of Final
Copy
12. Bookbinding
and Submission
APPENDIX B
65
LETTER OF APPOINTMENT TO THE THESIS ADVISER

College of Accountancy
Binangonan, Rizal
Dear Ma'am,
In consideration of your field of specialization, expertise and experience you are

being proposed to be the research adviser of Cyruse C. Liwanag, Amiel P.
Marasigan and Bencel John T. Reyta whose undergraduate thesis entitled
"Credit Management Practices of Help Entrepreneurs Launch Plentitude
Foundation (HELP) Inc. in Morong, Rizal” has been approved by the
Research Committee in partial fulfillment of the requirements for the degree of
Bachelor of Science in Accountancy.
If you agree to this, please sign the conformed below.
Very truly yours,

Dean, College of Accountancy
Conformed: ______________
Date: ___________________
APPENDIX C
66
LETTER OF ACCEPTANCE FROM THESIS ADVISER

Binangonan, Rizal
Dear Sir,
I have the honor to inform your good office that I have accepted the
proposal to be research adviser of Cyruse C. Liwanag, Amiel P. Marasigan and
Bencel John T. Reyta whose undergraduate thesis entitled "Credit Management
Practices of Help Entrepreneurs Launch Plentitude Foundation (HELP) Inc.
in Morong, Rizal” in partial fulfillment of the requirements of the degree of
Thank you very much and God bless.
Very truly yours,

Thesis Adviser
Conformed: ______________
Date: ___________________
APPENDIX D
67
LETTER OF APPOINTMENT TO THE CHAIRMAN OF THE PANEL
ALDRIN B. BOCA, MOS (CAR)

Binangonan, Rizal
Dear Sir:
In consideration of your field of specialization, expertise and experience

you are being proposed to be the Chairman of the Panel of Cyruse C. Liwanag,
Amiel P. Marasigan and Bencel John T. Reyta whose undergraduate thesis
entitled "Credit Management Practices of Help Entrepreneurs Launch
Plentitude Foundation (HELP) Inc. in Morong, Rizal” in partial fulfillment of
the requirements of the degree of Bachelor of Science in Accountancy.
Very truly yours,

Conformed: ______________
Date: _____________________
APPENDIX E
68
LETTER OF ACCEPTANCE FROM CHAIRMAN OF THE PANEL

Binangonan, Rizal
Dear Sir
I have the honor to inform your good office that I have accepted the
proposal to be the Chairman of the Panel of Cyruse C. Liwanag, Amiel P.
Marasigan and Bencel John T. Reyta whose undergraduate thesis entitled
"Credit Management Practices of Help Entrepreneurs Launch Plentitude
Foundation (HELP) Inc. in Morong, Rizal” in partial fulfillment of the
requirements of the degree of Bachelor of Science in Accountancy.
Very truly yours,
ALDRIN B. BOCA, MOS (CAR)
Chairman of the Panel
Conformed: ______________
Date: ___________________
69
APPENDIX F
LETTER OF APPOINTMENT TO THE THESIS STATISTICIAN
ALDRIN B. BOCA, MOS (ARC)

Binangonan, Rizal
Dear Sir:
In consideration of your field of specialization, expertise and experience

you are being proposed to be the research statistician of Cyruse C. Liwanag,
Amiel P. Marasigan and Bencel John T. Reyta whose undergraduate thesis
entitled "Credit Management Practices of Help Entrepreneurs Launch
Plentitude Foundation (HELP) Inc. in Morong, Rizal” in partial fulfillment of
the requirements of the degree of Bachelor of Science in Accountancy.
Very truly yours,
Conformed: __________________
Date: _______________________
70
APPENDIX G
LETTER OF ACCEPTANCE FROM THESIS STATISTICIAN

Binangonan, Rizal
Dear Sir
I have the honor inform your good office that I have accepted the proposal
to be research statistician of Cyruse C. Liwanag, Amiel P. Marasigan and Bencel
John T. Reyta whose undergraduate thesis entitled "Credit Management
Practices of Help Entrepreneurs Launch Plentitude Foundation (HELP) Inc.
in Morong, Rizal” in partial fulfillment of the requirements of the degree of
Very truly yours,
ALDRIN B. BOCA, MOS (ARC)
Research Statistician
Conformed: __________________
Date: _______________________
71
APPENDIX H
Republic of the Philippines

UNIVERSITY OF RIZAL SYSTEM
Binangonan Rizal
November 30, 2020

Help Entrepreneurs Launch Plentitude Foundation (HELP) Inc.
134 Turentigue St. Barangay San Juan, Morong, Rizal.
Maam/Sir,
Good Day!
We are Junior BSA Students currently taking up the subject Accounting
Research Methods with the Thesis entitled Credit Management Practices of Help
Entrepreneurs Launch Plentitude Foundation (HELP) Inc. In Morong, Rizal.
We would like to respectfully ask your permission to have your business
as our research subject. We will also be conducting interviews and
questionnaires of the business’s stakeholders such as managers, employees and
possibly clients. It would greatly help us if you will give your approval and provide
us the necessary requirements related to the study. Rest assured that all
information to be obtained will be kept confidential with utmost care, and you
shall be given a copy of the results of our study for your use.
We would love to discuss every detail regarding our study, and would
gladly come to your company in your most convenient time.
Hoping for your kindest consideration. Thank you and God Bless!
Sincerely,
Cyruse C. Liwanag
Amiel P. Marasigan
72
APPENDIX I
Credit Management Practices of Help Entrepreneurs Launch
Plentitude Foundation Inc. in Morong, Rizal
A.Y. 2020-2021
Checklist for Employees
Direction: Kindly read the following questions and answer them by checking the column
( ) or on the space provided. Any information you will extend will be treated with
confidentiality.
Respondents’ Profile
Name: (Optional) _________________________

A. Age: ___________
B. Sex:
( ) Male
( ) Female
C. Civil Status:
( ) Single
( ) Married
( ) Widow
( ) Separate
D. Educational Attainment:
( ) Elementary Graduate
( ) High School Graduate
( ) College Level
( ) College Graduate
( ) Other please specify: __________
E. No. of Years in Service: _____________
F. Position:
( ) Manager
( ) Accounting Staff
( ) Book Keeper
( ) Collector
( ) Loan Officer
( ) Others : ______________
G. Status of Employment:
( ) Regular
( ) Casual
( ) Part-time
73
I. Direction: Please Check (√) and rate yourself honestly based on what
you actually do given the statements using the following scales:
5- Always Practiced 3- Sometimes Practiced 1- Never
Practiced
4- Frequent Practiced 2- Seldom Practiced
CHARACTER 5 4 3 2 1
1. Conduct background investigation.
2. Determine past credit experience.
3. Reviews the credit limit of the customers.
CAPACITY
1. Measure the borrower’s ability to repay.
2. The loan is based on the debtor’s income.
3. Provide interest in loan.
CAPITAL
1. Identify borrowers family income and expenditures.
2. Obtains proof of customers capital.
3. Creditors use customers capital as an additional means
to repay the debt obligations.
COLLATERAL
1. Use the collateral security in defray the indebtedness.
2. Sells collateral upon default after considerable period.
3. Prefers the most liquid collateral/assets as collateral
such as financial securities, stocks, bonds.
CONDITION
1. Terms and conditions are properly express in the credit
contract.
2. Extends a due date and/or reschedule an outstanding
account.
3. Monitor accounts in approaching due date for payment.
II. Comments and Recommendations:

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
74
APPENDIX J

Binangonan Campus
Content Validation Certificate
This is to certify that the following experts have content validated the
research made test (questionnaire checklist) need in the undergraduate thesis
entitled “Credit Management Practices of Help Entrepreneurs Launch
Plentitude Foundation Inc. in Morong, Rizal Calendar Year 2021”
Name of the Expert Signature

Prof. Liberty Ocampo
Prof. Susan Cadiente
Prof. Ernie Tano
Prof. Gabriel Guno
Prof. Jonas Diestro Ynares
Prof. Yolanda Vistal
Prof. Aldrin Boca
Researchers:
Cyruse Liwanag
Amiel Marasigan
Bencel John Reyta
75
APPENDIX K
Binangonan Campus
TRAINING
PROGRAM
(Modules)
Prepared by:
Cyruse C. Liwanag
Amiel P. Marasigan
76
Module 1 – Credit Management
Overview:
This module will discuss the brief definition and importance of Credit
Management in the world of lending company. Specifically, this will involve the
Credit Management Practices that are used by most businesses.
Objectives:
At the end of this module, the target participants are expected to be able
to:
 Assess the real market condition by the credit professionals.
 To improve credit management of the company
 Assess cash flow and credit implications
 To have an efficient cash flow
 To help the company in safeguarding the client’s risk
CREDIT MANAGEMENT
Credit management is defined as your company’s action plan to guard
against late payments or defaults by your customers. An effective credit
management plan uses a continuous, proactive process of identifying risks,
evaluating their potential for loss and strategically guarding against the inherent
risks of extending credit. Having a credit management plan helps protect your
business’s cash flow, optimizes performance and reduces the possibility that a
default will adversely impact your business.
77
CREDIT MANAGEMENT PRACTICES
A credit manager is a person employed by an organization to manage the
credit department and make decisions concerning credit limits, acceptable levels
of risk, terms of payment and enforcement actions with their customers. This
function is often combined with Accounts Receivable and Collections into one
department of a company. The role of credit manager is variable in its scope and
Credit managers are responsible for:
 Controlling bad debt exposure and expenses, through the direct management
of credit terms on the company's ledgers.
 Maintaining strong cash flows through efficient collections. The efficiency of
cash flow is measured using various methods, most common of which
is Days Sales Outstanding (DSO).
 Ensuring an adequate Allowance for Doubtful Accounts is kept by the
company.
 Monitoring the Accounts Receivable portfolio for trends and warning signs.
 Hiring and firing of credit analysts, accounts receivable and collections
personnel.
 Enforcing the "stop list" of supply of goods and services to customers.
 Removing bad debts from the ledger (Bad Debt Write-Offs).
 Setting credit limits.
 Setting credit terms beyond those within credit analysts' authority.
 Setting credit rating criteria.
78
 Setting and ensuring compliance with a corporate credit policy.
 Pursuing legal remedies for non-payers.
 Obtaining security interests where necessary. Common examples of this
could be PPSA's, letters of credit or personal guarantees.
 Initiating legal or other recovery actions against customers who are
delinquent.
FIVE C’S OF CREDIT
The five Cs of credit is a system used by lenders to gauge
the creditworthiness of potential borrowers. The system weighs five
characteristics of the borrower and conditions of the loan, attempting to estimate
the chance of default and, consequently, the risk of a financial loss for the lender.
1. Character
Although it's called character, the first C more specifically refers
to credit history: a borrower's reputation or track record for repaying debts.
This information appears on the borrower's credit reports. Generated by the
three major credit bureaus—Experian, TransUnion, and Equifax—credit
reports contain detailed information about how much an applicant has
borrowed in the past and whether they have repaid loans on time. These
reports also contain information on collection accounts and bankruptcies, and
they retain most information for seven to 10 years
2. Capacity
79
(DTI) ratio. Lenders calculate DTI by adding together a borrower's total
monthly debt payments and dividing that by the borrower's gross monthly
income. The lower an applicant's DTI, the better the chance of qualifying for a
new loan. Every lender is different, but many lenders prefer an applicant's DTI
to be around 35% or less before approving an application for new financing.
3. Capital
Lenders also consider any capital the borrower puts toward a potential
investment. A large contribution by the borrower decreases the chance of
default. Borrowers who can put a down payment on a home, for example,
typically find it easier to receive a mortgage. Even special mortgages
designed to make homeownership accessible to more people, such as loans
guaranteed by the Federal Housing Administration (FHA) and the U.S.
Department of Veterans Affairs (VA), require borrowers to put down between
2% and 3.5% on their homes. Down payments indicate the borrower's level of
seriousness, which can make lenders more comfortable extending credit.
4. Collateral
assurance that if the borrower defaults on the loan, the lender can get
something back by repossessing the collateral. Often, the collateral is the
object one is borrowing the money for: Auto loans, for instance, are
secured by cars, and mortgages are secured by homes.
80
5. Conditions
principal, influence the lender's desire to finance the borrower. Conditions
can refer to how a borrower intends to use the money. Consider a
borrower who applies for a car loan or a home improvement loan. A lender
may be more likely to approve those loans because of their specific
purpose, rather than a signature loan, which could be used for anything.
Additionally, lenders may consider conditions that are outside of the
borrower's control, such as the state of the economy, industry trends, or
pending legislative changes.
81
Module 2 – Credit Risk Management
Overview:
This module will discuss the brief definition and importance of Credit
Management in the world of lending company. Specifically, this will involve the
Risk Management Practices that are used by most businesses.
Objectives:
At the end of this module, the target participants are expected to be able
to:
 Understand the risk associated in lending
 To help the managers and employees to analyze and evaluate the risks
 Reduce and eliminate harmful threats
RISK MANAGEMENT
Risk management is the process of identifying, assessing and controlling
threats to an organization's capital and earnings. These threats, or risks, could
stem from a wide variety of sources, including financial uncertainty, legal
liabilities, strategic management errors, accidents and natural
disasters. IT security threats and data-related risks, and the risk management
strategies to alleviate them, have become a top priority for digitized companies.
As a result, a risk management plan increasingly includes companies' processes
for identifying and controlling threats to its digital assets, including proprietary
corporate data, a customer's personally identifiable information (PII) and
intellectual property.
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Every business and organization face the risk of unexpected, harmful
events that can cost the company money or cause it to permanently close. Risk
management allows organizations to attempt to prepare for the unexpected by
minimizing risks and extra costs before they happen.
CREDIT RISK
Credit risk refers to the probability of loss due to a borrower’s failure to
make payments on any type of debt. Credit risk management is the practice of
mitigating losses by understanding the adequacy of a bank’s capital and loan
loss reserves at any given time – a process that has long been a challenge for
financial institutions.
IMPORTANCE OF RISK MANAGEMENT

By implementing a risk management plan and considering the various
potential risks or events before they occur, an organization can save money and
protect their future. This is because a robust risk management plan will help a
company establish procedures to avoid potential threats, minimize their impact
should they occur and cope with the results. This ability to understand and
control risk enables organizations to be more confident in their business
decisions. Furthermore, strong corporate governance principles that focus
specifically on risk management can help a company reach their goals.
Other important benefits of risk management include:
 Creates a safe and secure work environment for all staff and customers.
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 Increases the stability of business operations while also decreasing legal
liability.
 Provides protection from events that are detrimental to both the company and
the environment.
 Protects all involved people and assets from potential harm.
 Helps establish the organization's insurance needs in order to save on
unnecessary premiums.
The importance of combining risk management with patient safety has also been
revealed. In most hospitals and organizations, the risk management and patient
safety departments are separated; they incorporate different leadership, goals
and scope. However, some hospitals are recognizing that the ability to provide
safe, high-quality patient care is necessary to the protection of financial assets
and, as a result, should be incorporated with risk management.
RISK MANAGEMENT STRATEGIES AND PROCESSES
All risk management plans follow the same steps that combine to make up the
overall risk management process:
 Establish context. Understand the circumstances in which the rest of the
process will take place. The criteria that will be used to evaluate risk should
also be established and the structure of the analysis should be defined.
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 Risk identification. The company identifies and defines potential risks that
may negatively influence a specific company process or project.
 Risk analysis. Once specific types of risk are identified, the company then
determines the odds of them occurring, as well as their consequences. The
goal of risk analysis is to further understand each specific instance of risk,
and how it could influence the company's projects and objectives.
 Risk assessment and evaluation. The risk is then further evaluated after
determining the risk's overall likelihood of occurrence combined with its
overall consequence. The company can then make decisions on whether the
risk is acceptable and whether the company is willing to take it on based on
its risk appetite.
 Risk mitigation. During this step, companies assess their highest-ranked
risks and develop a plan to alleviate them using specific risk controls. These
plans include risk mitigation processes, risk prevention tactics and
contingency plans in the event the risk comes to fruition.
 Risk monitoring. Part of the mitigation plan includes following up on both the
risks and the overall plan to continuously monitor and track new and existing
risks. The overall risk management process should also be reviewed and
updated accordingly.
 Communicate and consult. Internal and external shareholders should be
included in communication and consultation at each appropriate step of the
risk management process and in regards to the process as a whole.
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RISK MANAGEMENT APPROACHES
After the company's specific risks are identified and the risk management
process has been implemented, there are several different strategies companies
can take in regard to different types of risk:
 Risk avoidance. While the complete elimination of all risk is rarely possible,
a risk avoidance strategy is designed to deflect as many threats as possible
in order to avoid the costly and disruptive consequences of a damaging
event.
 Risk reduction. Companies are sometimes able to reduce the amount of
damage certain risks can have on company processes. This is achieved by
adjusting certain aspects of an overall project plan or company process, or by
reducing its scope.
 Risk sharing. Sometimes, the consequences of a risk are shared, or
distributed among several of the project's participants or business
departments. The risk could also be shared with a third party, such as a
vendor or business partner.
 Risk retaining. Sometimes, companies decide a risk is worth it from a
business standpoint, and decide to keep the risk and deal with any potential
fallout. Companies will often retain a certain level of risk if a project's
anticipated profit is greater than the costs of its potential risk.
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LIMITATIONS
While risk management can be an extremely beneficial practice for organizations,
its limitations should also be considered. Many risk analysis techniques -- such
as creating a model or simulation -- require gathering large amounts of data. This
extensive data collection can be expensive and is not guaranteed to be reliable.
Furthermore, the use of data in decision making processes may have poor
outcomes if simple indicators are used to reflect the much more complex realities
of the situation. Similarly, adopting a decision throughout the whole project that
was intended for one small aspect can lead to unexpected results.
Another limitation is the lack of analysis expertise and time. Computer software
programs have been developed to simulate events that might have a negative
impact on the company. While cost effective, these complex programs require
trained personnel with comprehensive skills and knowledge in order to accurately
understand the generated results. Analyzing historical data to identify risks also
requires highly trained personnel. These individuals may not always be assigned
to the project. Even if they are, there frequently is not enough time to gather all
their findings, thus resulting in conflicts.
Other limitations include:
 A false sense of stability. Value-at-risk measures focus on the past instead
of the future. Therefore, the longer things go smoothly, the better the situation
looks. Unfortunately, this makes a downturn more likely.
87
 The illusion of control. Risk models can give organizations the false belief
that they can quantify and regulate every potential risk. This may cause an
organization to neglect the possibility of novel or unexpected risks.
Furthermore, there is no historical data for new products, so there's no
experience to base models on.
 Failure to see the big picture. It's difficult to see and understand the
complete picture of cumulative risk.
 Risk management is immature. An organization's risk management policies
are underdeveloped and lack the history to make accurate evaluations.
RISK MANAGEMENT STANDARDS
Since the early 2000s, several industry and government bodies have
expanded regulatory compliance rules that scrutinize companies' risk
management plans, policies and procedures. In an increasing number of
industries, boards of directors are required to review and report on the adequacy
of enterprise risk management processes. As a result, risk analysis, internal
audits and other means of risk assessment have become major components of
business strategy.
Risk management standards have been developed by several organizations,
including the National Institute of Standards and Technology (NIST) and the
International Organization for Standardization (ISO). These standards are
designed to help organizations identify specific threats, assess unique
88
vulnerabilities to determine their risk, identify ways to reduce these risks and then
implement risk reduction efforts according to organizational strategy.
The ISO 31000 principles, for example, provide frameworks for risk management
process improvements that can be used by companies, regardless of the
organization's size or target sector. The ISO 31000 is designed to "increase the
likelihood of achieving objectives, improve the identification of opportunities and
threats, and effectively allocate and use resources for risk treatment," according
to the ISO website. Although ISO 31000 cannot be used for certification
purposes, it can help provide guidance for internal or external risk audit, and it
allows organizations to compare their risk management practices with the
internationally recognized benchmarks.
The ISO recommends the following target areas, or principles, should be part of
the overall risk management process:
 The process should create value for the organization.
 It should be an integral part of the overall organizational process.
 It should factor into the company's overall decision-making process.
 It must explicitly address any uncertainty.
 It should be systematic and structured.
 It should be based on the best available information.
 It should be tailored to the project.
89
 It must take into account human factors, including potential errors.
 It should be transparent and all-inclusive.
 It should be adaptable to change.
 It should be continuously monitored and improved upon.
The ISO standards and others like it have been developed worldwide to help
organizations systematically implement risk management best practices. The
ultimate goal for these standards is to establish common frameworks and
processes to effectively implement risk management strategies.
These standards are often recognized by international regulatory bodies, or by
target industry groups. They are also regularly supplemented and updated to
reflect rapidly changing sources of business risk. Although following these
standards is usually voluntary, adherence may be required by industry regulators
or through business contracts.
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CURRICULUM
VITAE
91
CYRUSE C. LIWANAG
Address: 374 T. Claudio St., Maybancal, Morong, Rizal
Contact #: 09772409391
Email: cyruseliwanag@gmail.com
PERSONAL INFORMATION
Sex : Male
Age : 21
Date of Birth : December 7, 1999
Place of Birth : Morong, Rizal
Civil Status : Single
Citizenship : Filipino
EDUCATIONAL BACKGROUND
Tertiary : University of Rizal System-Binangonan Campus

Calumpang, Binangonan, Rizal
Secondary : Morong National High School
Accounancy Business and Management
T. Claudio St. San Juan, Morong, Rizal
: Morong National Highschool
T. Claudio St. San Juan, Morong, Rizal
Elementary : Maybancal Elementary School
G. Robles St. Maybancal, Morong, Rizal
SEMINARS AND TRAININGS ATTENDED
 Parallel Discipline Based Training on Financial Literary

University of Rizal System–Binangonan Campus
URS Binangonan (Audio Visual Room)
August 29, 2018
92
 Opportunities & Challenges in Business, Technology and
Communication in the 21st Century Workplace
October 23, 2018
AFFILIATIONS
 JUNIOR PHILIPPINE INSTITUTE OF ACCONTANTS-URS CHAPTER

Member
2018 up to Present
AWARD/S AND RECOGNITIONS
 With Honors
Morong National High School (Accountancy, Business and Management)
April 2018
93
AMIEL P. MARASIGAN
Address: Masalat Rd. Sampaloc, Tanay, Rizal
Contact #:
Email: amielmarasigan01@gmail.com
Sex : Male
Age : 21
Date of Birth : November 23, 1999
Place of Birth : Tanay, Rizal

Secondary : STI College Tanay
Accountancy Business and Management
Mla. East Rd. Tandang Kutyo, Tanay, Rizal
: Sampaloc National Highschool (Junior Highschool)
Sampaloc, Tanay, Rizal
Elementary : Primary Christian Academy
75 Air force Rd. Quezon, City
SEMINARS AND TRAINIINGS ATTENDED
 WORK IMMERSION
Camp Capinpin
Tanay, Rizal 2018
94
 Sex Education and Personality Development: Personal Care, Social and
Moral Development
URS Binangonan
February 18, 2018
 LCCM Seminar on Love, courtship and marriage LCM Seminar
URS Binangonan Function hall 5th floor
February 9, 2019
 Gender and Development Seminar
URS Binangonan Margarito Duavit Function Hall (5 th floor Annex Building)
November 7, 2019
 Parallel Discipline Based Training on Financial Literary

August 29, 2018
 Opportunities & Challenges in Business, Technology and
Communication in the 21st Century Workplace
October 23, 2018
 Training and emerging leaders Seminar
January 2020
 Leadership Training Program
Webinar
April 2021
AFFILIATIONS

Member (2018 up to Present)
 COLLEGE OF ACCOUNTANCY STUDENT BODY
President (2019-2020)
Secretary (2020 up to Present)
 Dean’s Lister (3rd Year, 1st Semester)

University of Rizal System – Binangonan Campus (College of Accountancy)
April 16, 2021
 High Honors
STI College Tanay (Accountancy, Business and Management)
95
April 2018

Address: Sitio Bukal, Tandang Kutyo, Tanay, Rizal
Contact #: 09656007044
Email: bencelreyta@gmail.com
Sex : Male
Age : 20
Date of Birth : July 23, 2000
Place of Birth : Tanay, Rizal

Secondary : STI College Tanay
Manila East Road, Barangay Tandang Kutyo
Tanay, Rizal
: Tanay National Higschool
Tanay, Rizal
Elementary : Ilaya Elementary School
J.M. Catolos St. Tandang Kutyo, Tanay, Rizal
SEMINARS AND TRAININGS ATTENDED
 Work Immersion
JRD-D2 Payroll Department
January 2018 - February 2018
 Parallel Discipline-Based In-Service Training
96
August 29, 2018
 LCCM Seminar on Love, Courtship and Marriage LCM Seminar
URS Binangonan Function hall 5th floor
February 9, 2019
 Gender and Development Seminar
URS Binangonan Margarito Duavit Function Hall (5 th floor Annex Building)
November 7, 2019
AFFILIATIONS

Member
2018 up to Present
97

Credit Management Practices of Help Incorporated in Morong Rizal

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Credit Management Practices of Help Incorporated in Morong Rizal

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CREDIT MANAGEMENT PRACTICES OF HELP ENTREPRENEURS

LAUNCH PLENTITUDE FOUNDATION (HELP)

CALENDAR YEAR 2020-2021

The Faculty of the College of Accountancy

University of Rizal System

of the Requirements for the Degree

Bachelor of Science in Accountancy

This thesis entitled “CREDIT MANAGEMENT PRACTICES OF HELP

ENTREPRENEURS LAUNCH PLENTITUDE FOUNDATION (HELP)

INCORPORATED IN MORONG, RIZAL”, has been prepared and submitted by

CYRUSE C. LIWANAG, AMIEL P. MARASIGAN, and BENCEL JOHN REYTA in

partial fulfilment of the requirements for the degree Bachelor of Science in

Accountancy, is hereby recommended for corresponding oral examination.

SUSAN D. CADIENTE, CPA, MBA

Approved in partial fulfilment of the requirements for the degree Bachelor

of Science in Accountancy by the Oral Examination Committee

NICOLE HUBBARD ALDRIN B. BOCA

ERNIE D. TANO, CPA, MBA

Approved and accepted in partial fulfilment of the requirements for the

degree Bachelor of Science in Accountancy.

ERNIE D. TANO, CPA, MBA

The researchers wish to extend their sincerest gratitude of profound

assistance to make their work possible.

ERNIE D. TANO, CPA, MBA, Dean of College of Accountancy, for

pursue the study;

SUSAN D. CADIENTE, CPA, MBA, their thesis adviser, for her

wholehearted efforts, valuable guidance, encouragement and suggestion for the

improvement of this study;

suggestions and encouragement in pursuing this study;

comments and suggestions for the improvement of the study.

PROF. YOLANDA VISTAL, their research instructor, for giving the

generosity, encouragement, support and invaluable suggestions for the

improvement of this study;

To their RESPONDENTS, who have been a part of their research, without

them this study will not be possible;

all the times despite their limitations and weaknesses.

study despite all difficulties encountered.

have been our source of inspiration and gave us strength when

we thought of giving up. To our brothers, sisters, relatives,

mentor, friends, and classmates who shared

their words of advice and encouragement

to finish this study. And finally,

we dedicated this book to

the almighty god,

thank you for the guidance,

strength, power of mind, protection and skills.

BENCEL JOHN T. REYTA

TITLE CREDIT MANAGEMENT

AUTHORS Cyruse C. Liwanag

COURSE AND ACADEMIC YEAR Bachelor of Science in

TYPE OF DOCUMENT Undergraduate Thesis

TOTAL OF PAGES 109

NAME AND ADDRESS OF INSTITUTION University of Rizal System

This study primarily aimed to assess the credit management practices of

Help Entrepreneurs Launch Plentitude Foundation (HELP) Inc. in Morong, Rizal

HELP Incorporated, in Morong, Rizal.

management practices of Help Entrepreneurs Launch Plentitude Foundation Inc.

in Morong, Rizal for the Calendar Year 2021.

engaged in Credit management industry in Morong, Rizal, and therefore utilized

100 percent of the respondents.

The researchers used a descriptive method and quantitative type of

research using a self-made Questionnaire-Checklist. It was used as the main

service, and a regular accounting staff.