The success of a banking or financial institution is not only from the human resource factor, but the availability of capital is the main factor. The higher the capital owned indicates that the bank or financial institution is getting healthier in its capital. Aside from being a buffer for bank operations, capital is also used as a buffer against possible losses from bad loans. The biggest contribution to the source of income for banks and financial institutions comes from lending. In order to get good interest, effective and efficient management is required. The method used in this research is qualitative with case studies at PT Permodalan Nasional Madani Kabanjahe Branch in the hope of being able to propose an Effective Billing strategy at ULaMM Kabanjahe in particular and generally for companies, so that companies can continue to grow. The results of this study are handling non-performing loans at ULaMM Kabanjahe Branch, including the category of non-performing loans which can be divided into four, namely loans under special mention, substandard loans, doubtful loans, and bad loans. Non-performing loans for the Kabanjahe Branch ULaMM Company can have a significant impact on the company. Overcoming Problem Credit is a complex and challenging task. ULaMM Kabanjahe Branch has various policies and approaches in managing non-performing loans to reduce the risk and negative impact on their financial health. The collection strategy carried out by ULaMM Kabanjahe Branch is early and active billing, empathetic communication, restructuring negotiations, control from unit heads, implementing company policies, active visits, desscall, company rules should not be rigid, discipline, consistency, direct billing, coordination with the government local, and good maintenance.

Keywords : Bad Credit, Effective Billing, Risk Management.