As a lending agency, what criteria would you use to determine how much to grant, to whom, and under what conditions? There are two parts to this question.

1. First, identify the criteria you would use to determine how much to grant, to whom and under what conditions. The criteria that I would use to identify who I would lend to and under what conditions, are as follow.

2. As part of your response to 1 above, where applicable under the respective and/or select criteria, please identify the financial ratio(s) that are critical for supporting lending decisions (see Commonly Used Ratios list (Spiro, 1996:60 (Table 4).

Please provide the rationale(s) for why the selected ratio(s) identified are important. We must use the 3c's of lending as well.