| Cooperatives offer tremendous possibilities for enhancing the economic status and well-being of the people for strengthening democracy. Through the various types of cooperatives, the people may find practical means of meeting their needs for essential commodities and services for production and consumption activities. The purpose of this research is to determine the relationship of credit policies to the short term financial planning of cooperatives in Batangas City. The data gathered from 25 cooperatives were analyzed and interpreted using frequency and percentage method, weighted mean and multiple regression analysis. Based on the gathered data, it was found out that the majority of the cooperatives have a credit period of 1 year but not less than 2 years and an interest rate of 1%-1.50% per month. Also, the collection procedure applied by the cooperatives is cash payment. Goals and objectives have a verbal interpretation of great extent, cash flow forecast possessed a moderate extent of application and cash budget presents a little extent of consideration in developing a shortterm financial plan. The study revealed that credit period, interest rate, and collection procedures are highly considered by the cooperatives in making credit policies. The study also found out that cooperatives greatly consider forecasting its financial performance in relation to goals and objectives, creating a tally of expenses in terms of cash flow forecast, and keeping track of expenses and revenues with respect to cash budget. Also, the study revealed that credit policies have no significant relationship to the short-term financial planning of cooperatives. The researchers recommend strategies to improve credit policies as far as short-term financial planning is concerned. |
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