CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Virtually, every business has a credit relationship with a financial institution, especially banks. Some rely on periodic short term loans to finance temporary working capital needs. Others primarily use long-term loans to finance capital expenditure, new acquisitions or permanent increases in capital. Regardless of the type of loan, all credit request mandate a systematic analysis of the borrower‟s ability to repay as at when due.
