FACTORS INFLUENCING THE QUANTITY OF CREDIT

Abstract

The important factor in driving a business is the capital that the entrepreneur will need to fund as a start-up. And between operations Capital makes the business efficient and can expand rapidly, so businesses must find the source of capital to use in business. The source of funding for business lending services. There are both government and private financial institutions.

The objective of this paper was to investigate factors influencing the quantity of credit. To guide the credit services to customers efficiently and effectively, have to Maximize Profit for Organization, Wealthy for Shareholders, Perfect return and happiness to employees. In carrying out this investigation, the researcher collected relevant quarterly time series secondary data from the period from the January 2007 to the August 2016 a total of 116 months.

Using the ordinary least squares (OLS) method in the form of multiple regression analysis. Finding showed that the factor directly affecting the quantity of total credit and which was in accordance with the set hypotheses posited for this inquiry was the quantity of total deposits (DEP) at the statistically significant reliability level of 99 percent and private investment index (PII) at the statistically significant reliability level of 95 percent.

This study makes note of the factors that affect the volume of business loans. This is used as a guide for future directions and trends. Employees involved can use the information to plan, formulate strategies, approve credit line, business sector, improve credit services. To get the most benefit.