Strategy of Small and Medium Enterprise Working Capital Loan Distribution in Efforts to Increase the Performance of PT Bank Central Asia Tbk, Bukit Barisan Medan Branch

Abstract

The competitive advantage of banks in the loan sector requires the adoption of strategies in the marketing mix of loan products in banks. One of several ways for optimal loan distribution and high performance in a bank is to apply the right strategy in accordance with customer expectations and needs. The purpose of this study is to analyze the factors of the marketing mix of bank loan products that have a significant effect on the utilization rate of working capital loan for small and medium enterprises as part of the distribution of loan facilities, and then propose an effective strategy to the bank to optimalize the level of loan distribution so that the bank can achieve business goals that have been set each year. In this research, the sample was 73 respondents with a population of 276 debtors using the working capital loan facility of small and medium enterprises in PT Bank Central Asia Tbk, Bukit Barisan Medan branch. Data collected by using questionnaire and tested the validity, reliability of the data which must meet the element of classical assumption test. Data analysis model in this study is using multiple linear regression analysis. The conclusion of this research result is explaining Price and Process as two of marketing mix elements which have significant effect on the utilization level of working capital loan facility of debtors and those two elements can influence 63,8% at loan facility usage level and the others factor which is not examined can influence 36,2% at loan facility usage level.

Keywords: Working capital loan distribution, Strategy, Performance, Loan usage level