Students will develop the practical knowledge and skills required to make sound lending decisions which balance risk and return, and which meet the needs of both lenders and borrowers. Core lending principles are examined, focussing on analysis of the first and second ways out (cash flow and security). Students will learn how to prepare lending proposals which critically appraise key risks and strengths in a lending transaction, and which persuasively communicate recommendations for the approval or decline of a proposal. The unit also incorporates more advanced lending aspects such as default probability models, covenants, risk mitigants, sensitivity analysis, loans to farmers, project finance and international finance.