This study aims to determine the cause of overdue loans by analyzing the systems and procedures in the provision of credit. This type of research is a descriptive study using a case study approach. Researchers used location is PT. KBPR Pancadana Batu is located at Jl. Diponegoro Batu. Results of the analysis system and working capital lending procedures applied to the PT. KBPR Pancadana Batu can generally be considered quite good. In the credit application procedure consists of 7 stages, credit applications, interviews, surveys, credit analysis, credit decision, disbursement of credit, and credit administration. Of the existing conclusions, the researchers advise that PT. KBPR Pancadana Batu immediately form part of the internal audit so as to assist inspectors in carrying out a routine inspection of each company's activities. As well as the supervision of the authority of each section. Immediately conducted an evaluation of the responsibilities of Account Officer (AO) because it is considered to have responsibilities that should do the other part.