In this unit students will develop the knowledge and skills necessary to identify and evaluate the key factors involved in making sound credit and lending decisions and to structure credit proposals to meet the needs of both the borrower and lender. Study will concentrate firstly on establishing and developing the principles of first way out and second way out and appraising a customer's ability to repay a loan from these sources. From there, the scope of the unit will be broadened to consider the analysis and reporting of risks associated with the first and second ways out. The unit includes the application of these principles to a series of practical lending situations: corporate customers, project finance, lending to the agricultural sector, and lending to small business.