EFFECTIVENESS FINANCING THROUGH PEER TO PEER FINANCIAL TECHNOLOGY AT SMMB (SMALL AND MEDIUM MICRO BUSINESS) IN INDONESIA

Abstract

The purpose of this research is to know how to apply financing and financing effectiveness through the financial technology peer to peer to SMMB in Indonesia. The Research methods used are qualitative. Primary data sources through interviews and secondary data are obtained from financial statements and books. The result of the research is the process of fintech financing on P2P lending products that often occur namely capital loans with the following financing requirements: Complement the files related to personal data and business, the application process is simpler & fast disbursement without the need to submit a guarantee. Then, based on observations conducted through previous research that financing through P2P fintech in SMMB in Indonesia has not been effective enough, where the company still has Not implemented the 5c principles in providing Financing, as well as the company still ignore the rules and restrictions issued by OJK number 77/POJK. However, the Management of fund Distribution services is still not qualified in minimizing risk, as well as the operation of the company is still less cautious so that it impacts on losses and debts that accumulate For SMMB businesses.