Level of Effectiveness of the Operational Practices and Problems Encountered by Business Financing Companies in the National Capital Region

Abstract

The main objective of this study was to determine the profile of the business financing companies and to assess the level of effectiveness of the operational practices of business financing companies in the National Capital Region (NCR) in terms of their profile, such as form of business organization, present capitalization, number of years of operation, number of employees, and estimated monthly income. It likewise desired to determine their operational problems, and problems pertaining to clients that were encountered by said companies, and how they vary in terms of form of business organization, present capitalization, number of years in operation, number of employees and estimated monthly income. The main tool used in gathering the data was questionnaire. Data gathered in accordance with the objectives of the study were interpreted by utilizing the following statistical tools:  frequency and percentage distribution, weighted mean, analysis of variance (ANOVA) and t-test.  Likert Scale was the instrument used to describe the extent of the respondents’ satisfaction on the operational policies of the business capital firms. Profit and wealth maximization always involve risk; therefore, respondents must implement a comprehensive and appropriate risk management system, including credit standards and collection policies, which should be considered as a continuous process.