Quality Of Financial Statements And Its Effects On Received Credits For Small Medium Enterprise (SME’s) Indonesia



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Submitted Jan 23, 2020
Published Feb 27, 2020
10.24018/ejbmr.2020.5.1.204

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This research examines the effect of the quality of financial statements, age, guarantees, and terms of SME's on the level of credit received. This study uses primary data by distributing questionnaires to SME business respondents in Indonesia. The sample used was 90 respondents. The results of this study indicate that the quality of SME financial statements does not affect the amount of credit received, this is due to the still low quality of SME financial reports so that banks still doubt the relevance and reliability of the quality of their financial statements. While the age, colateral and term variables affect the amount of credit received by SMEs.

Keywords: Quality of Financial Statements, Age, Collateral, SME's Terms, Credit.

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