Perception of Vendors on Informal Lending Institutions

Informal lending is one of the Philippines ' most common sources of funding for households. The study described the perception of vendors towards informal lending in terms of cost, discretion, patience, humanity or sympathy, and reliability. Survey questionnaire was used in the study. The researcher used likert-scale type questionnaire and analyzed it through statistical data treatment such as mean and weighted mean.The findings of the study are as follows: in terms of cost, informal lending adds investment to business; in terms of discretion, informal lending greatly helps the business; in terms of patience, payment usually is given on the agreed date; in terms of sympathy or humanity, apology seems to be effective in not meeting the agreed date; and in terms of reliability, the ease of access to informal lending.