Tag Archive for: Credit Management

This research assessed the control mechanisms in credit management of motorcycle dealers in Camarines Norte. Specific information were gathered pertaining to the profile of motorcycle dealers in terms of initial capital investment, length of business operation, average annual sales, average annual installment sales, number of employees assigned in collection, and training attended by collection personnel ; credit management employed by motorcycle dealers; level of assessment on the control mechanisms in credit management; and the significant relationship between the profile of the respondents and their level of assessment. Findings revealed that most of the respondents have at least five million and above initial capital investment with at least one million average annual installment sales. Also, their dealership business had been existing for ten years already with three to five personnel in-charge in the collection of payments, and been given the opportunity to attend to relevant trainings for at least three to five times a year. Accordingly, credit investigation and item repossession policy are among the commonly employed and existing credit management policies of the motor dealers. Further, the credit management’s control mechanisms along credit, billing, collection and imposition of penalties are highly observed by the motor dealers. The hypothesis when tested revealed a significant positive relationship which suggest that as the number of trainings attended by employees increases their level of assessment on the control mechanism in credit management in terms of collection also increases. The study strongly recommends regular conduct of training to personnel in-charge in collection, the adoption of computerization in recording transactions and giving of incentives to personnel who have reached the collection quota.