Collection practices of lending institutions in the eastern district of the province of Rizal calendar year 2016 Celar T. Codamos, Kheyson Francis Gil G. Francisco, Ron Elly C. Suarez

Thesis BSA University of Rizal System, Binangonan 2017

includes bibliographical references

This study primarily focused on collection practices of lending institutions in the eastern district of the province of Rizal. It aims to supply information about the collection practices applied by lending institutions and ways on how to sustain and improve it. In determining the perception of the respondents, the researchers used the following personal and business profile: age, civil status, sex, highest level of educational attainment, length of service, and position in the lending institution, Years of operation, number of employees, number of clients and initial or current capital, and the following factors: resources, infrastructures or equipment, people, policies, learning, evaluation and support. The researchers used the descriptive method of research and probability sampling technique in gathering data. The total respondents were 53 from 14 out of 29 lending institutions. These institutions came from the municipalities in the eastern district of the province of Rizal namely, Cardona, Jala-jala, Morong, Pililla and Tanay. The data collected were analyzed and interpreted using rank, frequency and percentage distribution, weighted mean and one-way analysis of variance. The result of the research showed that lending institutions in the eastern district of the province of Rizal have a good collection practice. In terms of resources, lending institutions provides or allocates enough funds for the improvement and development of their collection strategy. With regard to infrastructure or equipment, most of them have enough computers which are used to monitor and/or update the account balances of their clients. It can also be seen that they have enough number of collectors proportion with the number of clients. As to policies, most of the lending institutions give incentives to employees if they meet their quota and to clients if they pay on time. Trainings and seminars are provided to employees to improve their competency. The results also showed that lending institutions evaluates the totality of their collection practice. Lastly, majority of lending institutions provides enough support to collectors such as, allowances and other necessities like motor vehicles which are used for fast, smooth, and efficient collection of debt. Overall, lending institutions in the eastern district of the province of Rizal exhibits good collection practices. The researchers recommended that lending institutions in the eastern district of the province of Rizal may continue on providing or allocating more funds to finance those activities that will help the entity in developing and improving their collection practice. Financing those advantageous activities could result to a better collection practice. Lending institutions may consider giving incentives to their clients who pays their debts in advance or at its due date such as discounts, et cetera This could encourage the clients to pay even in advance. The institution should encourage their employees to attend trainings and seminars to improve staff competency. This could help the employees to better understand the nature of their job. The lending institutions should continue on providing allowances to collectors to finance their needs when they are on the field. This could help the collectors to be more productive. And, further research or study regarding the collection practices of lending institutions may be conducted.