Ways of Banks in Combating Bad Credit
Problems in credit collection make the bank have to issue a stance as a way to handle bank bad loans. If you feel confused because of a business that gets less profit and drags down paying bank bills, then the bank feels the same way. Every credit is given in full along with the risks. That is the duty of the bank to master the risk if there is a tightness in payment.
Before giving a loan to a customer, need to be reminded of 4 principles of healthy credit, namely: banks may not give loans if there is no black and white agreement, banks may not give loans to businesses that are unhealthy or problematic and tend to lose, banks may not give loans to be used as capital to buy and sell shares, and banks cannot give loans beyond the maximum credit limit. In order to convince the bank, the loan can be given on the basis of collateral or the ability to pay off the payment. The guarantee can then transfer ownership to the bank if the customer cannot pay off the payment.
Knowing the Causes of Bad Credit
Knowing the cause of the problem can be the basis for finding a solution. So we see what causes problems in credit. Not all loans are perfect in payments. One time, the possibility of not being paid can come from all customers, including orderly customers. The trigger factor can be very simple, namely forget. But it could be because the source of funds to pay bills is experiencing bankruptcy or a decrease in operating income. But, the error in problem loans does not only come from the customer. Banks can also be the cause of this problem.
Factors in this bank can come from weak analytical skills. Also there is no good coordination in the team.
For example, when considering a loan application, the case breaker does not pay attention to the opinion of the credit committee, does not pay attention to the value of the loan that exceeds the value of the guarantee and is not aware of the validity of the supporting documents provided by the customer. Next is a system of lack of information, weaknesses in recording and controlling. Furthermore, the bank’s negligence gives loans to customers who have close relationships with officers. The latter is a bond to a less powerful guarantee. The guarantee should be of sufficient value. Before revealing how to deal with bank bad loans, we first see the bad credit criteria.