The Role of Borrower Characteristics, Relationship Lending and Trust on SME's Creditworthiness

This research aim is to explore and review the variables affecting the SMEs borrower creditworthiness. This research will examine the qualitative and quantitative characteristics of SMEs borrowers, relationship lending and trust on creditworthiness of SMEs borrowers. This research will explore the role of trust to affect creditworthiness. Research findings show that trust of loan officer is very important in the interaction. The trust is perfect mediation (complete intervening variable) in relationship between the qualitative characteristics of borrower and relationship lending on creditworthiness. The trust also becomes a partial mediation variable (partial intervening variable) in relation to quantitative characteristics of borrower creditworthiness.