Analysis of Non-Performing Loans Based on Internal and External Factors at The Karya Sentosa Market Traders Cooperative in Batu City

Yufilda Maya Sira; Nur Ida Iriani; Ahmad Mukoffi

doi:10.64515/ijmb.v2i3.167

Authors

Yufilda Maya Sira Accounting, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia
Nur Ida Iriani Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia
Ahmad Mukoffi Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia

DOI:

https://doi.org/10.64515/ijmb.v2i3.167

Keywords:

Non-Performing, Internal Factors, External Factors, Loans, Cooperative Members

Abstract

Cooperatives are economic organizations owned and run by their members to achieve common economic goals. Internal and external variables can cause bad debts. This research analyzes the Non-Performing Loans Based on Internal and External Factors at The Karya Sentosa Market Traders Cooperative in Batu City (Koperasi Pedagang Pasar Karya Sentosa Kota Batu). A qualitative descriptive research approach was used. This study's data collection methods were literature review, interviews, and observations. This research finds that internal factors that cause bad debt include a weak credit analysis system and a lack of credit supervision. Otherwise, external factors causing bad debt include debtors' financial factors, intentional factors, and debtor character. Several strategies for handling bad debts consist of taking advantage of external opportunities, increasing internal strength by strengthening cooperative teamwork, increasing internal strength by increasing the number of collectors, and increasing the capacity of human resources in credit management. Furthermore, it is better to add members to collect to make the installment collection process easier in credit supervision.

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