S CHOOL OF B USINESS ADMINISTRATION AND ACCOUNTANCY

General Luna Road, Baguio City, Philippines 2600

Telefax No.: (074) 442-3071 Website: www.ubaguio.edu E-mail Address: ub@ubaguio.edu

UB VISION

In pursuit of perfection, the University of Baguio is committed to provide balanced quality education by nurturing academic excellence, relevant social skills and ethical values in a fun-learning environment.

UB MISSION

The University of Baguio educates individuals to be empowered professionals in a global community.

INSTITUTIONAL OBJECTIVES (REVISED 2011)

The University of Baguio aims to produce a graduate who:

1. exemplifies a higher standard of learning;

2. manifests the mastery of relevant skills;
3. upholds a conduct that is rightful and just;
4. undertakes scientific and significant researches;
5. advocates sustainable programs for the community and the environment; and
6. leads and demonstrates exemplary performance in the field of specialization.

CORE VALUES:

COMPETENCE + INTEGRITY = SERVICE

COMPETENCE University of Baguio is committed to nurturing excellent professionals.

INTEGRITY University of Baguio is committed to cultivating a community with ethical values.

SERVICE University of Baguio is dedicated to building a community that advocates sustainable programs for the society and the environment.

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 1 of 11
SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY MISSION

The University of Baguio educates individuals to be empowered professionals in a global community. The School of Business Administration and Accountancy edifies competitive and morally upright
individuals.

SCHOOL OBJECTIVES
The School of Business Administration and Accountancy aims to produce a graduate who:
1. cultivates the knowledge that is imperative for success in globalized setting;
2. displays expertise appropriate to the profession;
3. typifies professional integrity with humility;
4. undertakes researches to promote systematic bases for business decisions;
5. utilizes macro-environmental acumen for economic growth and development; and
6. exhibits commendable accomplishments in business and accountancy.

PROGRAM OBJECTIVES

The Bachelor of Science in Business Administration program aims to produce a graduate who:

1. fosters the highest level of competence in the chosen career;

2. performs the requisite skills in the various business disciplines;
3. makes morally upright choices in dealing with ethical dilemmas;
4. undertakes significant researches employed in crafting of relevant business decisions;
5. takes personal initiative and responsibility through participation in community-related activities, and;
6. contributes to successful business ventures by creditable work performance.

1. Program Learning Outcomes:

Bachelor of Science in Business Administration (effective SY 2015-2016)

1. A. The Graduates have the ability to articulate and discuss the latest developments in the specific field of practice.
2. B. The Graduates have the ability to effectively communicate orally and in writing using both English and Filipino.

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 2 of 11
 3. C. The Graduates have the ability to work effectively and independently in multi-disciplinary and multi-cultural teams.
4. D. The Graduates have the ability to act in recognition of professional, social, and ethical, responsibility.
5. E. The Graduates have the ability to preserve and promote “Filipino historical and cultural heritage” (based on RA 7722).
6. F. The Graduates have the ability to carry out researches that can be utilized in the community and in the business profession.

2. Learning Objectives:

At the end of the semester, the student must have:

1. Explain the techniques of granting loans by banks and other financial institutions.
2. Formulate policies with regards to credit.
3. Appreciate the importance of sound credit management in decision making
4. Knowledge of the Legal Proceedings & The Use of Third Parties in Collection

3. Course Description:

The course covers techniques of establishing the credit, obtaining and checking information, servicing the loan, billing and collecting amount due. Each of the bank’s installment credit operation
is strongly scrutinized. After successfully completing the course, the student should have a working knowledge of collection policies and procedures; Principles of credit evaluation; Open-end
credit; Direct lending; Leasing of consumer goods; Indirect lending; Legal aspects of installment credit; Organizing and managing an installment loan department. (CMO39 s2006)

Pre-requisite/s: FINMGT 1 and FINMGT 2

4.

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 3 of 11
 I. DETAILED COURSE OUTLINE:

Time
Desired Learning Teaching and Learning Activities
Course Content/ Subject Matter Textbook/References Resources/Materials Assessment Task Allotm
Outcomes (DLO) (TLA)
ent
At the end of the unit,
the students are
expected to be able to:

Course Syllabus
Be oriented about the
VMO
subject and its
Seat Plan
1
objectives
Leveling of Expectations
-Quiz
https://drive.google.com/file/d/0B - Assignment
Direct approach: -Recitation
1172KtU4ihHWkc5dGFkOU12aX
Lecture-Discussion -Seatwork
1. Credit & Collection : An NNMk11cnRYUHp4T0FxaF9N/vi
1. Explain the different ew
Overview Indirect approach: Seatwork: the
core credit & collection Power point Presentation Rubric for Seatwork
1.1. Definitions of Credit & Collection
concepts; and credit importance of credit Vertical Files 3
management
1.2. Cost of Credit & Collection https://drive.google.com/file/d/0B Introduction 5
1.3. The Credit Department 1172KtU4ihHUXlSWXFkRjVEQ2
philosophies Content 10
M/view Conclusion 5

1. Identify the different 2. Sources of Credit https://drive.google.com/file/d/0B Direct approach: Power point Presentation -Quiz 4
sources of credit 2.1. Financial Intermediaries 1172KtU4ihHRXZJb2paaFdhMV Lecture-Discussion Vertical Files - Assignment
2.2. Financial Institutions U/view -Recitation
2.2.1. Financing Companies Indirect approach: Seatwork: What -Seatwork
2.2.2. Assignment of Credit
https://drive.google.com/file/d/0B would be the best source of credit?
2.2.3. Philippine Finance Rubric for Seatwork
companies 1172KtU4ihHT3ViRkNacW5KM3
2.2.4. Underwriting M/view Introduction 5
2.2.5. Money Market Content 10
2.3. Commercial Banking Conclusion 5
2.3.1. Commercial Banking
Corporation
2.3.2. Total Liabilities
2.3.3. Line of Credit
2.3.4. Loan Agreements

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 4 of 11
 2.4. Savings and Mortgage Banking
2.4.1. Savings and Mortgage Bank
2.4.2. Loans and Investments
2.5. Rural Banks
2.6. Other Sources

https://www.sba.gov/content/exte
nding-credit-to-your-customers
Quiz
1.Apply the Cs of https://drive.google.com/file/d/0B -Assignment
Credit : Character, 1172KtU4ihHNDM5TFNsZDJLY -Seatwork – Group
3. The Credit Process UE/view Direct approach:
Capacity to Pay, Activity
3.1. The Customers- Credit Selection Lecture-Discussion
Condition, Capital & Power point Presentation
3.2 The Cs of Credit
Collateral in credit https://www.investopedia.com/ter Indirect Approach : Rubric
3.3. Credit Agreements Vertical Files 4
processing and
3.4. Credit Documents ms/c/creditagreement.asp Group Activity: 5 Cs of Bad
2.Be familiar with the Credit Analysis 5
3.5. Credit Insurance
various credit https://www.investopedia.com/ter Content 10
documents & ms/c/creditinsurance.asp Relevance 5
agreements

First Grading Examination 2

1. Know the 4.Credit Management
Importance of Credit 4.1. Importance of Credit
Management Management
2. Understand the 4.2. The Credit Man in the
Credit Department Business world
3.Learn the Credit 4.3. Efficiency of the Credit Man
Investigation 4.4. The Credit Department
4. Identify the sound 4.5. The Credit Manager
credit management 4.6. The Credit Investigation
5. Learn how to deal Appraisal
with Credit fraud 4.6.1. The Credit Investigation
4.6.2. The Scope of Credit
Investigation
4.6.2.1. Company’s
Background
4.6.2.2. Financial Conditions
https://drive.google.com/file/d/0B Direct approach: Power point Presentation Quiz 10
1172KtU4ihHY1YtLUczZ0JzdTQ/ Lecture-Discussion Vertical Files Recitation
view Indirect Approach: Reporting
Class recitation: shared
Rubric
topics on Credit Management:
Organization 5
Importance of Credit
Content 20
Management; The Credit Man in
Presentation 15
the Business World; Efficiency of
the Credit Man, The Credit
Department, The Credit
Manager, The Credit
Investigation Appraisal: The
Credit Investigation, The Scope
of Credit Investigation,
Company’s Background,

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 5 of 11
 4.6.2.3. Dealings with Financial Conditions,
Government lending Agencies Dealings with Government
4.6.2.4. Bank’s experience lending Agencies, Bank’s
with subject experience with subject,
4.6.2.5. Court Cases Court Cases, Credit Work:
4.7. Credit Work Supervisor, Senior Credit
4.7.1. Supervisor Analyst, Junior Credit Analyst,
4.7.2. Senior Credit Analyst Senior Appraiser, Appraiser,
4.7.3. Junior Credit Analyst Senior Credit Investigator,
4.7.4. Senior Appraiser Credit Investigator, Necessity
4.7.5. Appraiser for close supervision, Bank
4.7.6. Senior Credit Appraisal Report, Credit
Investigator Policy: How Bank Loan Policy
4.7.7. Credit Investigator is Formulated, Setting a
4.8. Necessity for close Standard for Control
supervision Purposes, Dissemination of
4.9. Bank Appraisal Report Loan Policy , Credit File,
4.10. Credit Policy Credit Policies of Commercial
4.10.1. How Bank Loan Policy Paper Houses: Scope of
is Formulated Credit Policy, Purposes and
4.10.2. Setting a Standard for Advantages of Credit Limits,
Control Purposes Principles of Controlled
4.10.3. Dissemination of Loan Credit, The problem of Credit
Policy Extension, Granting Credit:
4.11. Credit File Wholesale and Retail Credit,
4.12. Credit Policies of The Principal Objectives of
Commercial Paper Houses Credit: Maximizing Sales,
4.12.1. Scope of Credit Policy Controlling the amount of
4.12.2. Purposes and receivables, Controlling Cost
Advantages of Credit Limits of Credit and Collection,
4.12.3. Principles of Importance of Credit Limits:
Controlled Credit Types of Credit Limits,
4.12.4. The problem of Credit Sound Credit Management:
Extension Estimation, Enforcement,
4.13. Granting Credit Evaluation, Credit Frauds
4.13.1.Wholesale and Retail
Credit
4.14. The Principal Objectives of
Credit
4.14.1. Maximizing Sales
4.14.2. Controlling the amount
of receivables

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 6 of 11
 4.14.3. Controlling Cost of
Credit and Collection
4.15. Importance of Credit Limits
4.15.1. Types of Credit Limits
4.16. Sound Credit Management
3 E’s
4.16.1. Estimation
4.16.2. Enforcement
4.16.3. Evaluation
4.15. Credit Frauds
1.Define the
characteristic of credit
customers https://www.profic.com/self
Direct approach:
hosted/docs/fm/customer.htm
Lecture-Discussion Quiz
2.Determine the 5. Credit Systems Indirect Approach : Recitation
collection 5.1. Customer Master File ( To know https://www7bapcb.com/v2-
Class reporting/ recitation: Reporting
consideration for the customers well) service.bap.htm Rubric
shared topics on Customer Master
corporate and 5.2. Credit Ledger System Power point Presentation Organization 5 4
individual clients 5.3. Computerized Credit System File; Credit Leger System;
https://www.investopedia.com/ter Vertical Files Content 20
5.4. The Credit Bureau Computerized Credit System; and
ms/creditbureau.asp Presentation 15
3.Discuss the phases Credit Bureau
of credit & collection

1.Discuss the uses of Direct approach: Power point Presentation Quiz 6

credit risk to credit 6. Credit Risk Lecture-Discussion Vertical Files Recitation
operations 6.1. Risk Management & Control https://en.wikipedia.org/wiki/Cre Indirect Approach: Reporting
6.2. Information Sources & Their Value ditrisk Class discussion/ case analysis: Rubric
2. Compare and 6.3. Credit Scoring
shared topics on Risk Management & Organization 5
contrast the different 6.4. Application of Credit Risk Content 20
credit scoring schema Management https://www.transunion.ph/philip Control, Information Sources & Their
pines/business/service- Value, Credit Scoring, Application of Presentation 15
6.5. Credit Risk Loss Distribution
solutions/credit-scores.page Credit Risk Management, Credit Risk
https://www.slideshare.net/MAB Loss Distribution
SIV/credit-scoring

https://mmsomoza.wordpress.c
om/2012/06/19/credit-score-
philippines/

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 7 of 11
 2
Midterm Examination
https://www.ehow.com/info8195
853 definition-credit-
collections.html
7. Collections http://www.investopedia.com/ter Quiz
7.1. Collection, defined Assignment –
7.2. Valued Clients versus Delinquent
ms/d/delinquent.asp
sample of a
Accounts collection/demand
7.3. Importance of Collection http://www.smetoolkit.org/smeto
1.Identify how internal Direct approach: letter
7.4. Collection Objectives olkit/en/content/en/72/10-Steps- Recitation
and external factors Lecture-Discussion
7.5. Factors Affecting Collection to-Effective-Collections Power point Presentation Role Play
affect credit & Indirect Approach: Role Playing: 4
collection
Decisions Vertical Files Rubric
7.6. Internal and External Factors Collection of Banks/ Lending
management https://en.wikipedia.org/wiki/De Content 15
Affecting Collections institutions
btor Scenario 10
7.7. Type of Collection
Organization 5
7.8. Cost of Collection http://www.bms.co.in/what-are-
7.9. Targets and Use of Resources Impact 5
7.10. Dealing with Collection Problems
the-different-types-of-debtors/ Presentation 5

https://en.wikipedia.org/wiki/Coll
ection_cost

http://edglossary.org/credit-
recovery/
1.Discuss credit Direct approach:
8. Credit Remediation
remediation strategies http://www.investopedia.com/ter Lecture-Discussion Power point Presentation Quiz
8.1 Credit Remediation, defined
and client care- Assignment
campaigns commonly
8.2.Objectives of Credit Remediation ms/credit-repair.asp Indirect Approach: Vertical Files Recitation
4
8.3. Elements of Credit Remediation Recitation – other suggested
used.
8.4. Benefits of Credit Remediation http://files.eric.ed.gov/fulltext/E remedies for credit recovery
D521327.pdf

1. Discuss the 9. The Economy of Credit & http://business.laws.com/negoti Direct approach: Power point Presentation Quiz 4
economic importance Collection able-instruments/banks-and- Lecture-Discussion Vertical Files -Assignment
of credit & collection 9.1. Benefits to Both Creditor & Debtor customers/creditor-and-debtor Indirect Approach: -Seatwork – Group

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 8 of 11
 Activity

Rubric

Group Activity: Drawing with Understanding of

2. Appreciate the 9.2. Creditor-Debtor Relations
the Concept 5
BASEL Accord on 9.3. The BASEL Accord http://www.bsp.gov.ph/regulatio explanation: Creditor – Debtor Creativity (did not
credit ns/implementation.asp Relationship copy from the
internet) 5
Content of
explanation 10

Quiz
-Assignment
-Seatwork : Case
1.Evaluate the role of Study
legal proceedings and Direct approach:
10. Legal Proceedings & The Use of Power point Presentation
3rd-parties efforts in http://www.bsp.gov.ph/download Lecture-Discussion Rubric
Third Parties in Collection Vertical Files 4
collecting delinquent s/regulations/consumerlaws.pdf Indirect Approach:
accounts Case Study Introduction 5
Content/ reaction 5
Conclusion 5

Final Examination 2
54

II. GRADING SYSTEM:

For Professional Subjects: the cut-off score is 70%. The highest possible grade is ninety-nine (99); the lowest passing grade is seventy-five (75); and the lowest failing grade is sixty-five (65).

First grading Class standing = 70 % ; Exam = 30 %

Midterms Class standing = 60 % ; Exam = 40 %
( Tentative Midterm Grade x 2 + First Grading ) / 3 = Midterm Grade
Finals Class standing = 60 % ; Exam = 40 %
( Tentative Final Grade x 2 + Midterm Grade ) / 3 = Final grade

III. REFERENCES:

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 9 of 11
 A. Books

Allen, Kathleen.(2013). Creating new ventures. Phil ed. Andover: Cengage Learning.
Rob Dransfield.(2014). Business Economics. Routledge.
David C. Colander.( 2013)Economics.McGraw-Hill.
Cabrera, Ma. Elenita B. (2015)Financial Management : Principles and Applications: volume 2. 2015 ed. Manila : GIC Enterprises.
Cabrera, Ma. Elenita B. (2014) Management Accounting : Concepts and Applications. 2014 ed. Manila : GIC Enterprises

B. Electronic Sources
Introduction to Credit and Collection. (2014). Retrieved on December 28, 2017 from https://drive.google.com/file/d/0B1172KtU4ihHWkc5dGFkOU12aXNNMk11cnRYUHp4T0FxaF9N/view
Classes and Kinds of Credit. ((2014). Retrieved on December 28, 2017 from https://drive.google.com/file/d/0B1172KtU4ihHUXlSWXFkRjVEQ2M/view
Sources of Credit. (2014). Retrieved on December 28, 2017 from https://drive.google.com/file/d/0B1172KtU4ihHRXZJb2paaFdhMVU/view
Other Sources of Credit. (2014). Retrieved on December 28, 2017 from https://drive.google.com/file/d/0B1172KtU4ihHT3ViRkNacW5KM3M/view
Kinds of Credit Instruments. (2014). Retrieved on December 28, 2017 from https://drive.google.com/file/d/0B1172KtU4ihHT3ViRkNacW5KM3M/view
The 5 Cs of a Good and Bad Credit. (2014). Retrieved on December 28, 2017 from https://drive.google.com/file/d/0B1172KtU4ihHNDM5TFNsZDJLYUE/view
Credit Management. (2014). Retrieved on December 28, 2017 from https://drive.google.com/file/d/0B1172KtU4ihHY1YtLUczZ0JzdTQ/view
Extending Credit to your Customers. (2015). Retrieved on December 29, 2017 from https://www.sba.gov/content/extending-credit-to-your-customers
Credit Agreement. (2014). Retrieved on December 29, 2017 from https://www.investopedia.com/terms/c/creditagreement.asp
Credit Insurance. (2015). Retrieved on December 29, 2017 from https://www.investopedia.com/terms/c/creditinsurance.asp
Credit Bureau. (2014). Retrieved on December 29, 2017 from https://www.investopedia.com/terms/creditbureau.asp
Credit Risk. (2014). Retrieved on December 29, 2017 from https://en.wikipedia.org/wiki/Creditrisk
Credit Scoring. (2014). Retrieved on December 29, 2017 from https://www.transunion.ph/philippines/business/service-solutions/credit-scores.page
https://www.slideshare.net/MABSIV/credit-scoring
Credit Score. (2013). Retrieved on December 29, 2017 from https://mmsomoza.wordpress.com/2012/06/19/credit-score-philippines/
Definition Credit and Collection. (2017). Retrieved on December 29, 2017 from https://www.ehow.com/info8195853 definition-credit-collections.html
Delinquent. (2015). Retrieved on December 29, 2017 from http://www.investopedia.com/terms/d/delinquent.asp
Effective Collection. (2014). Retrieved on December 29, 2017 from http://www.smetoolkit.org/smetoolkit/en/content/en/72/10-Steps-to-Effective-Collections
Definition Debtor. (2013). Retrieved on December 29, 2017 from https://en.wikipedia.org/wiki/Debtor
Different types of Debtor. (2014). Retrieved on Decebmer 29, 2017 from http://www.bms.co.in/what-are-the-different-types-of-debtors/
Collection Cost. (2014). Retrieved on Decebmer 29, 2017 from https://en.wikipedia.org/wiki/Collection_cost
Credit Recovery. (2014). Retrieved on Decebmer 29, 2017 from http://edglossary.org/credit-recovery/
Credit Repair. (2014). Retrieved on Decebmer 29, 2017 from http://www.investopedia.com/terms/credit-repair.asp
A Creditor and Debtors Relationship. (2015). Retrieved on December 29, 2017 from http://business.laws.com/negotiable-instruments/banks-and-customers/creditor-and-debtor
Risk-Based Capital Adequacy Framework in the Philippines. (2013). Retrieved on December 29, 2017 from http://www.bsp.gov.ph/regulations/implementation.asp

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 10 of 11
Prepared by:

BELEN B. APOSTOL, MBA

Instructor

References Verified by:

MR. EARLE NESTOR P. FERNANDEZ

Section Head Librarian

Approved by:

DR. KAREEN B. LEON, CPA, CMA

Dean

Subject Code: FINMGT3 (3 UNITS) Subject Description: CREDIT AND COLLECTION Effectivity: 2ND SEMESTER SY 2017-2018 Date Revised: DECEMBER 2017 Page 11 of 11