Receive Loans, Radana Finance Targets to Distribute IDR 1.5 Trillion

Finance company PT Radana Bhaskara Finance Tbk. (HDFA) obtained an additional working capital credit facility of IDR 150 billion from Bank Jago. The company targets financing of up to IDR 1.5 trillion this year.

In May 2021, the company under the banner of Rubicon (Archipelago Capital Partner) and TMT (Tiara Marga Trakindo) Group just received a working capital credit facility of Rp. 50 billion and a forex facility of US$ 5 million from Bank Permata.

Radana Finance Director of Finance Rizalsyah Riezky explained that this proves that Radana Finance is increasingly trusted by banking partners in carrying out business transformation.

“The additional facilities from Bank Jago will be used to meet Radana Finance’s funding needs until the end of 2021.” he said in a press statement, Friday (11/6/2021).

Until the end of May 2021, Radana Finance has disbursed financing of more than IDR 425 billion, as revealed by Milokevin Wendiady as Radana Finance’s Business Director.

Has Two Main Products

Radana Finance has two main products to meet the needs of the SME sector, namely Factoring Financing and Asset-Based Financing.

This HDFA coded issuer serves factoring financing in the form of purchasing trade receivables for working capital needs.

With this product, consumers can disburse their invoices/bills faster without waiting for the invoice to be due, so that it can help accelerate debtor’s business growth.

In addition, the company also serves Asset-Based Financing which is financing with asset guarantees for the purchase of new or used heavy equipment/trucks, as well as refinancing.

This financing is intended for working capital/investment needs and has several types of facilities, namely: leaseback, lease, and installment payments.

Radana Finance targets to continue to strengthen the organization to become a market leader in the SME financing sector. Until the end of 2021, new financing is targeted to reach IDR 1.5 trillion.

“We are optimistic that we will achieve this target by continuing to innovate our products and business processes. In addition, we also continue to cooperate with related parties,” said Milokevin.

Radana is committed to continuing to meet the needs of the SME sector to get better access to finance. This is also in line with the company’s vision to become a reliable financial partner and the main choice for SME customers in Indonesia.

Successfully Earned Profits after 3 Years of Loss

In the first quarter of 2021, PT Radana Bhaskara Finance Tbk (HDFA) managed to record a net profit of IDR 7.2 billion compared to the same period last year, still losing IDR 13.3 billion.

Finance Director of Radana Finance, Rizalsyah Riezky said, the growth of net profit was inseparable from Radana Finance’s success in carrying out business transformation in 2020 by improving business processes so that operational costs could be reduced by 45% to IDR 11 billion from the same position the previous year amounted to IDR 20 billion.

Radana Finance’s Business Director, Milokevin Wendiady added, another factor driving the company’s business growth was the shift from consumptive financing in the form of multipurpose motorcycle and used car financing to productive financing in the form of factoring financing and investment financing with asset guarantees for SME customers in Indonesia.

Meanwhile, the composition of the company’s portfolio at the beginning of 2020 consisted of around 80% consumptive financing and around 20% productive financing.

“As of the first quarter of 2021, there will be around 15 percent of consumer financing and 85 percent of productive financing,” he explained.

According to the Director of Operations of Radana Finance, Arif Budiman, he continued to improve the overall business process, especially in the acquisition and management of receivables to ensure good quality of receivables.

“Until March 2021, the NPF-gross level for the productive portfolio is maintained at below 1%. This makes the overall NPF-net figure maintained at 0% in the first quarter of 2021 from the same previous position of 4.5%,” he said.