TABLE OF CONTENTS

CHAPTER 1: THE PROBLEM 1

Introduction 1
Conceptual Framework 3
Statement of Purpose 5
Significance of the Study 6
Scope and Limitations 8
Technical Background 9
CHAPTER 2: REVIEW OF RELATED LITERATURE 10
Related Study 10
CHAPTER 3:RESEARCH METHODOLOGY 12
Design 12
Environment/Locale 12
Respondents/Participants 13
Instruments/Sources of Data 13
Data Gathering Procedure 13
Data Analysis/Treatment of Data 14
Ethical Considerations 14
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CHAPTER 1
THE PROBLEM

Introduction

Due to the extraordinary uncertainty and the significant

economic impact caused by COVID-19, financial loans have been
widely available today. In the Philippines, numerous small
enterprises have shut down, leaving many citizens unemployed
and the lack of access to modern technology makes it difficult
for people attempting to launch a loan firm to operate the
business.

According to Suzanne Sabharwal(2020), accounts receivable is

the most valuable asset for most businesses. Many ERP and
accounting systems include AR modules. However, most provide only
minimal tools to support collections and dispute management
processes. A major way finance leaders can effectively develop
efficiencies and implement cost savings is through AR workflow
automation. Companies across several diverse industries are
challenged to manage outstanding accounts receivable. Industries
with the highest median percentage of uncollectable receivables
include manufacturing, specialty trade contractors, business
services, engineering services, and wholesale distributors.
Today, about 17% of business customers do not adhere to supplier
credit terms. Most (61%) companies delay or deny payment due to
compliance or administrative problems such as incorrect invoices
or receiving the invoice too late to process payment on
established credit terms.

Some financial firms do not have an automated system for

managing loan records. This situation makes it difficult to
instantly confirm loan information or get reports when in need.
There is a difficulty in keeping, updating, and searching of loan
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information of clients due to manual process. There is also a

risk of losing important files due to non-secure storage. The
manual process of computing the client’s payment and the interest
rate will result in numerous human errors. Manual data storage
increases the possibility of misplacing or duplicating loan
information or records.

By implementing the common errors of the system that the

researchers
Intend to review all of the mistakes. Therefore, the researchers
develop a concept that improves the user experience. With regard
to handling daily transactions and monthly accounts, this study
aims to develop and improve the manual method. Authorized persons
or staff will find it simpler to safeguard and manage loan
records across all transactions.
Researchers figure out a technique to make it simpler to operate
and more user-friendly.
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Conceptual Framework

Plan

The procedure utilized by the current loan company to handle

transactions is using manual process, the implementation of this
project software is to eliminate the time-consuming on processing
the loan transactions. Also manage and protect the loan process,
repayments, investments, and collections of the establishment’s
transactions. The researchers conducted an initial interview in
order to become familiar with the problems facing financial
firms. Also used a quantitative approach as a way of gathering
information to acquire the required data. Researchers conducted a
survey through distributing the questionnaires to the respected
respondents of the study. Respondents of this study are the staff
and manager of different lending companies.

Do and Check

After gathering all the relevant data through surveys and

interview, the researchers found that the lending has number of
problems and issues. Using Microsoft Visual Studio as their major
development environment, the researcher developed Credit &
Collection Management System to address the concern and problems
in manual process. All the relevant data was stored by the
researcher using Microsoft SQL Server, which offers a safe and
dependable database management system that can handle intricate
data needs of the lending company. After researchers created
Credit & Collection, it underwent rigorous testing to guarantee
that the functionality of the System to address difficulties and
problems and that no new issues were introduced. The system was
put to the test by researchers, the research committee, and the
intended users to ensure that it sped up processing times,
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reduced data entry errors, enhanced communication, and provided

greater access to information. To ensure that the system's final
result was dependable and effective for the lending industry, all
issues and problems encountered during the testing process were
addressed and fixed.

Act

After the examination of the system conduction by the

research committee although Credit and Collection was nearly
complete, Suggestion from the research committee were obtained to
bring changes of the system. To ensure that the system addressed
the unique demands and requirements of the lending organizations,
the researchers integrated the new features recommended by the
research committee. In order to incorporate the new feature and
improvements, more development work was done. Thorough testing
was also carried out to make sure the system was operating at its
peak and satisfied the requirements for deployment.
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Statement of Purpose
General Objectives

The purpose of developing this proposed software project is

to manage and protect the loan process, repayments, investments,
and collections of the establishment’s transactions, as well as
to promote a harmonious and smooth-flowing working environment.
With the use of the developed system, it will be easier for
authorized personnel or staff to manage and secure loan records
in all transactions.

Specific Objectives

This study aims to build a software system that:

1. Provide users with a reliable system-generated

computation of the client’s payment and interest rate;

2. Set up a secure loan account and information for Credit

& Collection;

3. Helps the employee of Credit and Collection to be more

efficient in their work to lessen human error;

4. Offers a faster way of adding, updating, and searching

for loan accounts and records;

5. Monitor the aging accounts and calculate the payments of

the clients;

6. Generate reliable loan reports;

7. Creates a system that is fast and accurate; and
8. Provide a secure database which will hold large amount
of transaction data.
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Significance of the Study

This proposed study provides financial business advantages

and high level of service efficiency by utilizing modern
technology. Taking into account the vitality of developed systems
in achieving an ideal data access and recording, the researcher
aspires to build a system of both effortless and time-conserving.

This study beneficial to the following:

Lenders

The financial loan management system will assist them in

making their tasks or transactions more convenient. It will

promote time management because it no longer uses manual work,
and employees will benefit because the system will process fast
and reliable services, allowing them to transact business without
difficulty.

Lending Staff

Through this computerized system, the staff can now easily

manage client’s information, save loan transaction and monitor a
client’s due date and payment history by simply searching the
client’s name. They can now enjoy less hassle work where
transactions are done spontaneously because of the automatic
computation of loan records. They can meet what the clients want
and can do more than just one work without too much stress on
their needs.
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Borrowers

Borrowers are one of the main priorities in this kind of

business, and with the help of this system, they could serve well
by the manager so do with the employee in an accurate and
efficient way.

The Researchers

The study enhances the skills and acquired knowledge of each

researcher in solving problems in data-gathering. It improves the
approaches and confidence of each researcher in the face of such
dilemmas.

Future Researchers

This study will serve as an updated reference for future

generations to successfully complete their study proposal. Taking
into account the business world's consistent development, the
study leaves space for improvement.
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Scope and Limitations

This study is focused on the development of the Credit and
Collection Management System.

Specifically, the system can do the following:

 Accept user information, loan information, and

client’s information.

 Save, search, update, and delete user information

 Save, search, update, and delete loan information
 Save, search, update, and delete Client’s information
 Auto compute principal amount, interest, gross amount,
loans payable, loans receivable, and uncollected
payments
 Auto detects overdue account
 It can generate loan reports and expenses.

The following are the limitations of the system:

 It can’t generate payroll

 It doesn’t support mobile
 It doesn’t support web
 It doesn’t have online\cloud storage
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Technical Background
The researcher used Microsoft Visual Studio, SQL Server, and
C# programming language to develop their system.

Microsoft Visual Studio. is a Microsoft integrated development

environment (IDE) It is used to create computer programs,
particularly those created using Microsoft Visual Studio for
websites, web applications, and online applications.

Microsoft SQL Server. is a Microsoft-created relational database

management system It is a software product known as a database
server, and its main job is to store and retrieve data as needed
by other software applications. These applications may run on the
same computer or on a different machine over a network.

C# Programming Language. C# is a natural language for

programmers to use for creating and utilizing software components
since the system language provides language structures that
directly support these concepts.
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CHAPTER 2
REVIEW OF RELATED LITERATURE

A review of related literature is a thorough analysis

of previously published works that are pertinent to a thesis
or dissertation's subject.

Related Study
Debt Management and Collections System

Adair (2023) This research attempts to reduce manual labor,

enhance accuracy, and increase your capacity to recover unpaid
bills. By offering clients simple payment options, this system
helps businesses to automate notifications and alerts, expedite
the payment process, improve cash flow, shorten collection
cycles, and improve customer experience.

A debt management and collections system ability to recover

overdue bills is improved by a debt management and collections
system since it eliminates manual labor and minimizes mistakes.
Although the system's primary users are AR personnel, the entire
company will benefit from it as well.

Cash Loan Management System

GraduateWay(2016)The goal of this project is to create a

system that will make it easier for Chidzabana Cash Loans to
organize, compute, and store its papers properly. The loan
application form is a computerized method for gathering customer
information, managing records, and computing loan payments. The
system is able to generate a list of all users who defaulted on
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loans within a specific month, and then compute interest using

the updated amount.

The system will be able to produce a list of all customers who

missed payments on their loans for a particular month, and use
the new balance to calculate interest. The total payment and
interest calculations for each customer will be determined
independently.

FRA Loan Management System Project

Wiriyaporn Mahaudompun(2000) The project includes system

analysis and design for the settlement, receiving payment, and
loan detail processes. The current system has issues brought on
by manual processes. This project is intended to address a
variety of issues, including time consumption, data inaccuracy,
and redundancy. The new computerized system will improve process
control, decrease errors, and deliver superior management data
quickly to support plan implementation.

The first steps in this project's study are the creation of the
objectives and an examination of the current system. After study
revealed that loan document gathering was inefficient, management
made the decision to convert the FRA Loan Management system from
a manual to a computerized one. The results of the system
analysis are presented in a variety of forms, such as data flow
diagrams, structural charts, and other diagrams that show how the
system functions at the moment.
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CHAPTER 3
RESEARCH METHODOLOGY

This chapter provides precise information on the research

that the researchers carried out, including how they made the
study possible, how the information and data required for it were
acquired, and where the study was conducted

Design
The researchers conducted an initial interview to learn more

about the issues facing financial institutions in order to

accomplish

the study & objectives. To get the necessary data, the

researchers

utilized a quantitative method of data gathering.

Environment/Locale
This study was carried out at various lending companies in Bogo

City, Cebu. The following companies were chosen by the

researchers:

LT&amp, Credit Line, Kaabag Lending Services Incorporated, JGC

Financing

Company Inc., First Philippine Partners Bank, Inc., Southstar Uni

Credit Corporation, APC Finance, PLC Panjojoban Lending

Corporation,
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Pera MPC Bogo Satellite, P.M.C. Philmer & Credit Corporation,

R.Express Lending House Corporation, and Katipunan Bank.

Respondents/Participants
The respondents of this study are staff and manager of several

lending companies in Bogo City, Cebu. The sample size is fifty

(50)

respondents. They are each given one (1) survey questionnaire,

which

is then gathered, compiled, and analyzed to obtain all the data

required for the accomplishment of this research project.

Instruments/Sources of Data
The researchers prepared survey questionnaires using a Likert

scale to collect data for the study. To the respectable study

respondents, questionnaires for the survey were given out.

Additionally, the researchers used additional sources of

information,

such as notes, books, earlier theses, and reliable sources that

were

relevant to their study about the Credit and Collection

Management

System.

Data Gathering Procedure

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A letter of proposal was sent to the dean of the College of

Computer Studies, along with all of the researchers’ questions,

for

correction and approval; another letter of endorsement was sent

to the owners of various lending companies, requesting permission
to conduct a survey of the lending manager and staff. Following
the completion of the questionnaire, it will be given to
respondents in order to collect the necessary information for
this study.

Furthermore, the data and information obtained by the researcher

from various Lending Companies were kept strictly confidential.

Data Analysis/Treatment of Data

After retrieving the questionnaire, the researcher tallied and

evaluated the results. The collected data was organized. The

researcher evaluated the challenges encountered by Lending Staff

in

connection to top management, middle management, lower

management,

instructional facilities, and debtors as a whole.

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Ethical Considerations
This section presents a discussion of the ethical actions made

before, during and after the data collection.

A. Protection of Human Rights

Informed consent will be provided for each of the participants

after being briefed about the purpose of the study. They will be

informed of their rights to withhold information that they are

not

comfortable sharing with others and that they have the right to

withdraw from their participation in the study at any time they

want. Ethical approval of the study will be obtained through an

ethical review committee or by the REC. Standard protocols will

be

employed in this study to minimize risks and maximize benefits to

participants.

B. Risk of this Project to Participants

Participation in this study is no anticipated risk to the

respondents. Participation will be voluntary, divulged

information
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will be taken with the utmost confidentiality. No identifier will

be

included on the survey questionnaires. The whole research process

is

thoroughly explained to the respondents. Absolute honesty in

answering the questionnaires will be solicited for and

respondents

were in no way coerced to participate.

C. Content, Comprehension, and Documentation of Informed Consent

Participant Status

Part of the consent is the status of the participant and the

distinction of research and treatment is explained. Administrator

are key factor in the lending process. The information obtained

in

their participation in the study will be a powerful tool for the

researcher to use in gathering data. Information regarding the

data

obtained from the participant is for research purposes. Further,

it

will be explained how respondents are chosen.

Study Goals

This study aims to provide business advantages and a high

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level of service efficiency by utilizing modern technology.

Taking

into account the vitality of developed systems in achieving an

ideal

data access and recording, the researcher aspires to build a

system

of both effortless and time-conserving. The results of this study

will serve as a basis that can be used by the administrators, and

collectors to develop plans to improve the lending company.

Type of Data

The type of data to be collected will be categorical data.

Categorical data were those that describe the Lending Company and

how they monitor their Credit and Collect Management System. Data

were collected in a form of questionnaires. To collect the needed

data, the researcher will write a letter asking permission from

the

different lending companies where the study was conducted.

Procedures

Authorization to access private information will be solicited

for. Ethical approval of the study will be obtained through

written

permission from the Dean of College of Computer Studies; also,

written informed consent was obtained from the participating

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administrators. All the data gathered will be assured

confidential

by the researchers. Identifiers will not be included in the

survey

questionnaire.

Nature of the Commitment

Participants will be informed that the survey they have the

time to answer the question. They will also be informed of the

study

duration which would take around 1 month to complete.

Sponsorship

The participants are aware of the individuals or associations

that sponsored the study. Sponsors will be informed that the

researcher conducted this study as part of the requirements in

obtaining a degree and also for professional growth and

development.

Participant Selection

Part also of the consent will be the number of

individuals/respondents needed to participate in this study. A

target participant of this study will be the Staff/Manager from

different lending company using purposive sampling technique.

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Potential Risks

Furthermore, the researchers will inform the respondents that

there are no anticipated risks in their participation and that

they

are free not to answer the questions that they are not
comfortable

with. Questionnaires will be answered by them voluntarily.

Potential Benefits

This study will be expected to be helpful to the respondents

in such a way that this provided them with an idea about their

Credit and Collection Management System.

Alternatives

Participants will be told that an alternative procedure was

made available for them according to their preference or

convenience

in taking part in the study whether to withhold certain

information

or to further provide details that might be very helpful in the

conduct of the study.

Compensation

Participation in this study was voluntary and highly

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appreciated by the researchers. The respondents are informed that

the researcher expressed sincere gratitude to them for the effort

and extra time devoted voluntarily despite their busy schedule.

The

respondents will not receive any compensation in their

participation.

Confidentiality Pledge

Participants will be assured that information shall be treated

confidentially and that the information taken from the

respondents

was dealt with the utmost confidentiality.

Voluntary Consent

Moreover, informed consent will contain information that the

participation of the respondents would not affect their personal

life and their work.

Right to Withdraw and Withhold Information

Respondents have the rights to withdraw and withhold specific

information, even at the start of the inquiry will be included in

the informed consent with the reassurance that all information

will

be dealt with utmost confidentiality of divulge information.

Contact Details
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Reflected also in the consent form are the details of the

researchers to be able them to know the researchers well and to

avoid the risk of the participants during the study conducted in

the

said different lending companies.

D. Privacy and Confidentiality

Privacy and confidentiality will be applied to all data

gathered and all questionnaires will be kept in a safe place. The

researchers will not reveal the identity of the respondents in

the

publication of the research output. All data will be treated with

utmost protection under the provisions of the DATA PRIVACY ACT of

2012. A copy of an informed consent form will be provided for

each

respondents in this study.

E. Debriefing, Communication and Referrals

The researchers will express his heartfelt gratitude to the

respondents and discuss the intent to conduct the study after the

survey questionnaires will be answered completely by the

respondents. Since they are fully informed of the purpose of the

study, respondents will be given the choice to withdraw the data.

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Respondents will be requested not to disclose the procedure

employed

in the study to anyone who might participate for this could

affect

the results of the study conducted. The researchers will discuss

the

final report with the respondents during the debriefing

procedure. A

copy of the study will be provided to the respondents should they

wish to have one.

F. Incentives or Compensation

Respondents will not receive any compensation in their

participation in this study.

G. Conflict of Interest

There will be no existing conflict of interest evident in this

study since personal interest does not influence the researcher’s

decision to whom, how, when, where, and why the study will be

conducted. An agreement will be made that the anonymity of the

respondents will be maintained if in case other people wish to

publish this research study. To avoid conflict of interest, if

monetary matters are required by the research adviser, the

researchers will comply and conform to the necessary agreement.

An

official research agreement will be provided which contains the

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prerequisites, the terms and conditions, and the legalities of

using

the research study as future reference.

H. Recruitment

There will be a discussion on a manner of recruitment

including appropriateness of identified recruiting parties. There

will be no presence of any type of coercion, intimidation or

undue

influence used to recruit participants. Participants have the

right

to refuse to participate or to withdraw without penalty. They

will

be asked to withdraw at any time in case they feel uncomfortable

to

continue with the participation.

I. Vulnerability Assessment

Appropriate vulnerability measures will be accounted for in

choosing the participants of this study. Inclusion Criteria

involve

participants who will take part in the study who are the only
ones

to be included to participate and answer the survey

questionnaires.

Staff/Manager from different lending companies are the only ones

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recruited for the data collection process. Exclusion criteria are

those who have diseases and disabilities and those who are
incapable

of participating.

J. Collaborative Study Terms of Reference

An agreement will be set between the researchers and the

dissertation adviser including intellectual property rights,

publication rights, information and responsibility sharing,

transparency and capacity building as collaborative study terms

of

reference.