The Effectiveness of Special Repayment Strategies in Overcoming Bad Credit at Leasing Company PT.Mega Auto Central Finance

Abstract

ABSTRACT

Bad credit is a problem in non-bank financial institutions such as leasing companies, so a good strategy is needed to overcome this. One of them is the implementation of a special repayment strategy of PT Mega Auto Central Finance. This study aims to determine the effectiveness of the implementation of a special repayment strategy in overcoming bad credit at the leasing company PT Mega Auto Central Finance (PT MACF). The approach used in this research is qualitative which produces descriptive data in the form of written words from people and observable behavior. The stages of this research method consist of information collection, reduction, and selection. The research location is located at PT Mega Auto Central Finance Sidikalang. Informants consisted of the heads of posts, administration, collector coordinators, and implementers of the special repayment program. Data collection techniques used interviews (primary) to 13 employees, observation, and secondary data (books and journals). The results of the study said that this company had a high level of bad debts on motorcycle loans. After the implementation of the special repayment strategy, the bad debt rate decreased from previous years. In November 2023, the company's bad debts of 29% were lower than before the implementation of the special repayment strategy in 2020 of 36%.