Abstract

This study discusses the factors that affect financing problems at Baitul Maal Wat Tamwil (BMT) Al-Falah Klaten, as well as strategies for handling them. This type of descriptive qualitative research, is field research with a location in BMT Al-Falah Klaten. Primary data from interviews and secondary data from supporting document data.
 The results of the study stated that the factors causing problematic financing at BMT Al-Falah Klaten were 2: internal factors: lack of closeness with members, inaccuracy of officers, incomplete data, procedural errors and moral hazard. External Factors: Bad customer character, misused financing funds, changes in government policies. Several strategies for handling problematic financing: Monitoring of members, Relaxation of financing with rescheduling, reconditioning and negotiation and foreclosure of collateral as a last resort.

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