PENGARUH UNDERTAKING BANK’S, AKSES PEMBIAYAAN BANK, RISIKO KINERJA, BIAYA TRANSAKSI, DAN PROSES LETTER OF CREDIT TERHADAP KEPUTUSAN PENGGUNAAN LETTER OF CREDIT

This research was conducted to examine the effect of undertaking bank's, access to bank financing, performance risk, transaction costs, and letter of credit process on the decision to use letter of credit. The data collection technique in this study used a survey by distributing questionnaires. The population in this study are companies or SMEs that are members of the WhatsApp Export Center Surabaya group that use letters of credit as a payment instrument with a total of 204 respondents using purposive sampling technique. This study uses a quantitative approach with multiple regression analysis as the method and data analysis is done using SPSS 25. The results of this study indicate that the bank's undertaking, access to bank financing, and the letter of credit process have a positive and significant effect on the decision to use a letter of credit. Meanwhile, performance risk and transaction costs have a negative and significant effect on the decision to use a letter of credit.