Analysis of factors affecting bad debts

The purpose of this study is to find out what factors cause bad debts. The results of this study show that from the accounts receivable report. The amount of bad debts is very high and continues to increase. The factors that cause bad debts are internal factors in the form of weak credit administration systems, weak credit supervision systems, weak credit information systems and irregularities or fraud committed during the credit implementation process. Where the rules, standards, and procedures that have been established are not carried out properly. In addition to internal factors, external factors are also the cause of the high number of bad debts, where these external factors are caused by a decline in economic conditions, business failures occupied, and partners who run away, causing the number of bad debts to be quite high.