Making sales is important, but collecting on those sales is critical that’s why company tend to provide effective collection management. Collection is an important service that helps to both clients and free up money for lending again. It is a strategic process that is key to generating good habits and a payment culture among clients.it can also be seen as s business activity whose primary objective is to generate returns for the institution, converting losses into income..

. the importance of effective collection management which affects the business’ performance

BACKGROUND OF THE STUDY The researchers chose to study the effectiveness of collection management practices of selected motorcycle dealer in Batangas City. This is conducted due to high risk that the motorcycle dealers encounter if they didn’t manage their collections effectively. Motorcycle dealers have different payment mode such as payment through cash, installment, credit, and the like. It made the researchers wonder how important the collection management to the financial status of their businesses. It says that if you don't have a credit and collections policy, or if you haven’t reviewed your policy in a while, it’s time to get started, it is important to design and actively implement a credit and collection policy. The researchers find out problem such as having a loan amounts that exceed the client’s capacity to pay and over indebtedness; customers has poor references or poor attitude towards paying on time; or lack of risk management rules can affect generating revenue. This study became their interest for everyone must know the importance of awareness of the problem and benefits from collection practices. The researchers believed that assessment of the collection management practices of