Nonperforming loans at any financial institution both banks and non bank has become a scourge for the business finance. Various ways have been done in anticipation of the emergence of non-performing loans in the loan disbursement. Among the banks have done a detailed analysis associated with prospective customers through surveys such as the site of the business, the collateral assurance survey and environmental checks. Everything has been done to minimize any risks associated with non-performing loans. Still, so tight in the process of loan disbursement still their customers in arrears, it is because various factors are as follows:
1. Less rigorous in analyzing bank clerk credit proposals
2. Her astute prospective bank customers in the proposed
3. Global economic factors that make reciprocation of effort
4. No good money management is done by the customer
In anticipation of a credit crunch, banks have been anticipating since the beginning that the strict monitoring of the bank’s customers, do pick up daily to ease the burden on customers in monthly installments, hire employees collection midwives who are experts in their field and have high competence, raise the review employees to supplement a high work ethic.
Nonperforming loans can also be done by way of assistance to customers in the conduct of its business is by providing business training, providing consulting services on how doing business the right thing, knowing intimately the problems and customer complaints. So the banks are not only making a profit just from customers in the capital but also feel lend to each other. This can prevent the risk in terms of credibility of giving. Besides, in addressing problem loans, the banks apply the collateral in the form of land and buildings or vacant land and other moving objects, it is intended if the customer cannot keep his word then the bank can withdraw the goods that have been in Collateral, so the risk of problem loans could be on tap.
