Memperbaiki Pencapaian Collection pada PT Ridean Finance

To complete my bachelor study in S1 Bisnis Prasetiya Mulya, a project case improvement was conducted. It took place on a multi-finance company named PT Ridean Finance. Company runs on consumer credit industry that makes loan for people who need hard cash on short-term basis or those in need of financing to own a vehicle. Its major customers are lower middle people in Jakarta. Indonesia’s multi-finance industry reached its peak in 2006. Since then, interest rate went lower and Indonesia’s lower class is so huge that it fuels the rapid increase of motorcycle credit penjualan. Problem that was going to be improved lies in its collection department. Bad collection leads to limited cash, required to generate more sales. As such, this problem is undoubtedly crucial and needs immediate corrective action. Problem started to arise when account officers offer credit to unqualified customers and they are not able to repay the loan. To define the problem more clearly, a simple gap analysis was conducted. The result tells that company problem is ineffective collections, causing sub optimal sales performance and higher cost of fund (or interest expense). To formulate the most appropriate and effective solution, root cause to this obstacle needs to be identified. Direct observation, interview, and some secondary datas are used to complete this process. There are several possible causes and last but not least, each root cause is discovered at three different levels. At the strategic level, company has been targeting high risk market (lower middle class). Externally (relative to the firm), lower middle class tend to have dubious character when it comes to repayment. Meanwhile, internally there are three causes; unqualified account officer in association with credit assessment activity, lack of supporting information system, and lastly, sales personnel, also doubling as credit analyst brings an agency problem to the firm. Solution proposed attempts to answer problem in every level. Product and market development will overcome problems in strategic and external level. Forming an underwriter team and developing integrated information system will help to fix up problems in internal level. Integrated solution will be implemented simultaneously according to the timeline presented at the later chapter. The improvement made will be presented on these key indicators: increased operating income, healthier aging schedule, and interest expense reduction.