| The rising standard of living at present causes some people to choose motorcycle as their main means of transportation and as an alternative for walking, riding a bicycle, or utilizing a public transport. The commuter congestion within cities is also one of the top reasons why people prefer motorcycle; it is a cheaper and more convenient form of transportation too which has less environmental impact than automobile ownership.With the increase of demand in motorcycle vehicle, some businesses got so caught up in the excitement of making sales and forgot the necessity of wise credit policies. Formulating well-founded credit policies is therefore a must for every business firms, for it plays an important role in the liquidity and profitability of the entity.The purpose of this research was to analyze the credit policies of motorcycle dealers in Batangas City. The data gathered from thirteen(13) motorcycle dealers and one hundred fifty-two(152) customers were analyzed and interpreted using frequency, percentage method, and weighted mean. The study revealed that motorcycle dealers implement credit policies that consider various bases in establishing credit period, credit limit and down payment to a very great extent. With regard to the extent of implementation of credit standards and sources of credit information, credit collection and actions taken in case of default payment, the motorcycle dealers implement such matters in an extensive manner; whereas from the customers’ point of view these matters are slightly to moderately implemented. The study also found out that the credit policies offered by motorcycle dealers affect its customer retention to a very great extent and that extending credit to customers affects the cash flow of motorcycle dealers brought by late or delinquent payment. |
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