Employed Credit Risk Management by Motorcycle Dealers in Batangas City, Philippines

The researchers focused on this topic for the reason that only few people have been introduced and exposed to credit risk management and intend to evaluate the importance of credit management in financial institutions. It also aims to assess the credit management employed by the motorcycle dealers in Batangas City, Philippines. It intends to describe the demographic profile of motorcycle dealers in terms of nature of business, initial capital investment, length of business operation and product brand offered; to know how they manage their accounts receivables in terms of billing process, collection policies, types of credit policies and penalties imposed; to know the problems and the proposed solutions to those problems in relation to credit risk management. To obtain accurate data, come up with concrete facts and eventually come up with adequate interpretation concerning the study the researchers use a descriptive method of research design. After the significant findings thoroughly assessed and facts have been presented, several invaluable conclusions were drawn. First, that majority of Motorcycle Business in Batangas City are corporation, with investment that range from Php 5,000,001.00 and above and operated for more than 15 years. Second that the customers prefer to be personally informed for billing process while the dealers want to receive in advance cash payment. Also motorcycle dealers engaged strict analysis of the risk and its strict collection for credit policy and the repossession of motorcycle is the top priority in imposing penalties. Moreover, the top problem encountered by motorcycle dealers was that customer does not pay on time.

Keywords: Credit, risk management, motorcycle dealers