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Peer to Peer Lending as a Financing Sources Alternatives for MSMEs in Cibaduyut Shoes Industry

Rizki Fadhilah, Mandra Lazuardi Kitri


Abstract. Micro small medium enterprises (MSMEs) has important role in the economy of a country, including in Indonesia. But based on Financial Service Authority (OJK) 70% of total MSMEs not yet gotten access and bank financing. Financing problem also happen in Cibaduyut Shoes Industry, which has potential internationally. There are two types of financing, which are equity and debt. There is new alternative financing source in Indonesia which is P2P lending which has growing rapidly. P2P lending has faster process, less cost and less complex requirement than credit bank.Thus, this research is conducted to find out the preferences of the owner of Cibaduyut shoes factory in choosing financing source to solve the financing problem. Then this research aims to know the perceptions and preferences of Cibaduyut shoe factory owner about P2P lending and the intention of them in using P2P lending as financing source alternatives. According to Saini (2016) and Rosavina, et al. (2019), factors that considered by MSMEs to use P2P lending as financing sources is loan process, interest rate, process cost, amount of loan, loan application flexibility, and alternative payment scheme. These factors adopted to be framework for semi structured interview to the owner of Cibaduyut shoes factory. Based on interview result, using qualitative analysis, 4 of 6 respondent tend to use equity as financing source in solving their financing problem. Then, the all factors mentioned in framework are considered by the owner of Cibaduyut shoes factory in using P2P lending. There is also original findings from this research which the owner of Cibaduyut shoes factory consider Security and Privacy in using P2P lending, since theP2P lending use online process. Last, 5 of 10 respondent are interested to use P2P lending as an alternative financing source.

Keywords: MSMEs; Financing; Cibaduyut Shoes Industry; P2P Lending


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