The COVID-19 pandemic, which has been endemic since March 2020, has affected several economic sectors in Indonesia. One of them is the consumer finance company sector or heavy equipment financing multi. Until May 2020, it was noted that heavy equipment financing decreased by around 12.3% according to OJK statistics.
Several multi finance companies said that the downward trend in demand for heavy equipment is one of the challenges they are currently facing. Yannuar Alin as President Director of PT Buana Finance Tbk. said that the application for heavy equipment financing decreased. In addition, multi-finance companies also prioritize applying for credit relaxation to their customers.
The Director of Mandiri Tunas Finance, Harjanto Tjitoharjo, also expressed a similar opinion. In addition, multipurpose finance companies are also more selective in providing financing in any form after the pandemic. Including heavy equipment financing. This is to reduce the risk of bad credit which increases during the pandemic.
1. What are the Heavy Equipment Financing Requirements?
Generally, heavy equipment financing itself is proposed by business actors who run businesses but are related to heavy equipment investment. BFI Finance is one of the multi-finance companies that provide these financing facilities. It can also be through the form of working capital financing in the sale and leaseback mechanism.
Sudjono as Director of Finance and Corporate Secretary of BFI Finance also explained that there was a decrease in the distribution of heavy equipment financing. However, in terms of productive assets, there was an increase of 3%. He is optimistic that BFI Finance's heavy equipment financing will improve. For total credit disbursement itself, the total credit that has been disbursed has increased by 20.7%.
BFI Finance itself accepts several types of capital goods financing. For example, heavy equipment for various industrial sectors, trucks, printing machines, industrial machines, and medical equipment. To apply for financing, debtors can submit a loan application form, photocopy of personal data, current account, salary slip, and so on, the full details of which can be viewed on the official BFI Finance website.
Multifinance companies are optimistic that heavy equipment financing will improve over time. There are several strategies carried out by finance companies to achieve the target in 2020.
Quoted from Financial Cash, several strategies are being implemented, namely establishing cooperation with partners, improving HR performance, and reducing the efficiency of Operational Expenses on Operating Income (BOPO).
It is hoped that in the period of adaptation to new habits, the demand and performance of heavy equipment financing will increase as before.