The aim of this study was to study the retail customers’ 4C (character, capacity, collateral,
and capital) that affected credit quality on finance companies. This study focused on the
financing of used motorcycles from 2013-2014 with the position of balanced of book per
December 2015. This study used artificial intelligence concept with scoring system. The
dependent variable was the customer credit quality that was overdue 90 days, and the
independent variables were character, capacity, collateral and capital of the customers.
This study took samples of 67,500 customers using logistic regression test model. The
empirical results showed that 4C had a significant effect on credit quality. There were 12
out of 13 variables that showed significant influence namely sex, age, length of stay,
home ownership, marital status, employment status, cost ratio, motor guarantee brand,
ownership status, down payment, and tenor. This significance was tested with a 5 percent
confidence level. Income did not have significant effect. |