Introduction
Corporate
lending
is
an
intuitive
process
that
is
more
an
art
than
a science
at
this stage of its evolution.
Credit
scoring techniques are fast
being
developed
and
applied to corporate lending, however,
and
are
set
to
add
a layer
of
protection over the approval process.
The
side effect
of
credit scoring is the acceptance
that
a percentage of
loans
will
go
bad;
in
the
past, loans
did
go
bad
but
would
not
have
been
approved
unless the analysis
indicated the
ability to repay .