At the end of the discussion, the students are expected to:
1. Know the main purpose of credit agencies
2. Identify the services offered by CMAP
3. Enumerate the bases of credit
4. Found out the ways on how to prevent frauds on collateral
The credit agencies and Credit Management Association of the Philippines are those that utilize our financial system. In order for our economy grow and prosper for being united in the field of financial management. There are 5 bases of credit which is character, capacity, capital, collateral and condition. There are also ways on preventing fraud on collateral.
A. CREDIT AGENCIES It is simply means collecting or gathering information of individuals and businesses debts in order …show more content…
CREDIT MANAGEMENT ASSOCIATION OF THE PHILIPPINES
The main function of CMAP is to properly and wisely allocated and utilize the financial resources. They are also the one that governs all financial institutions that provide loans and credit. Banking, financing, services, trading, manufacturing and insurance sectors are the members of CMAP. Their man goal is to instill, develop and nurture credit consciousness. *Services Offered
1. Quarterly Survey of Credit and Collection Bureau Every quarter of the year member of the companies are surveyed by the association office (a) to compare their individual experience on the collection situation (b) to identify the prevailing terms of sale, billing of receivables, and ratio of bad debts to gross credit sales (c) aging of receivables.
2. Listing of Overdue Accounts The association provides names of accounts that overdue the standardized terms of the reporting company.
3. Listing of Court Cases They also compiled the list of court cases in the categories of sum of money, replevin and estafa fields in the different courts within the cities and towns of Metro …show more content…
BASES OF CREDIT 1. CHARACTER One of the most important things to consider is the character of the borrower because it reflects his personal integrity and his determination to pay can be evaluated by his pat business record. It also indicates the willingness of the borrower to discharge his financial obligation which is to pay the loan as promised. Personal habits, vices, and attitude the borrower are also included. 2. CAPACITY The main concern of this is the managerial ability of the borrower. If he can use efficiently and wisely the loan should also be observed. Capacity is just like signing a valid contract. Age and health of the debtor are two important things to consider because it impairs their ability to pay. 3. CAPITAL It refers to the resources owned by the debtor. The more resources you have the greater chance you can obtain the credit. 4. COLLATERAL It is just like securing your loans and shielding the interest of the creditor from bad debts. Through collateral, the incidence of risk of bad debt becomes minimized. For example, mortgages are secured by homes.
These are several types of collateral, the most important of which are the
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