Credit Analysis

Module Title	Credit Analysis
Module Code	25-5008-00S
Semester of Delivery	See Module Information Table
Mandatory/Elective/Option	See Module Information Table
Level	5
Credit Points	20

Assessment Mode Weighting	Coursework	100%
	Examination	0%

Pre-requisites	None
Co-requisites	None

Class Contact Hours
Average Weekly	2.5

Directed Learning
Average Weekly	10

Module Leader	Mike Henderson
	Sheffield Business School
Module Banding	A
Approval Status	Validated

Rationale

This module will help students to develop the skills used by financial institutions in assessing businesses. The techniques studied will provide a valuable set of tools for anyone intending to work in the field of finance or in the financial services industry. The module explores the principles underlying lending decisions and will enable students to develop analytical and problem-solving skills through work on a range of case studies, primarily dealing with small businesses.

Summary of Aims

To provide students with the opportunity to develop skills of analysis and problem-solving
To help students to compare forms of finance available to small businesses
To enable students to analyse proposals for borrowing in a thorough and coherent way
To encourage students to see decisions about providing finance in a broader context

Anticipated Learning Outcomes

On completion of the module students should be able to:-

Assess the advantages and disadvantages of different forms of finance available to small businesses
Identify the factors influencing decisions by providers of finance and assess their relative importance in different contexts
Analyse data about the financial needs of businesses using a range of techniques including quantitative techniques
Ask appropriate questions where relevant evidence relating to financial needs is missing
Make recommendations about appropriate forms of finance for specific businesses and propose solutions to problems that they face
Present ideas effectively (individually and working in groups)

Assessment and Feedback Strategy

Assessment will consist of two major case study assignments. Feedback from the assignment work and from case studies undertaken as formative assessment will be a key element of the learning process and will be provided in four ways:-

General comments about the overall approach adopted by students will be summarised and posted by Email on the module conference site as soon as the process of marking is completed.
Students will be given an individual feedback sheet - the format of this sheet will be available beforehand spelling out the assessment criteria that will be applied.
Oral feedback at class sessions will reinforce learning relating to the issues covered in the conference site.
Students will be invited to speak to the module tutors if the information provided in the first three ways is too little or is unclear. Time will be made available at the end of class sessions for this purpose.

Teaching and Learning Strategy and Methods

The major learning resources for the module will be the case studies considered in the module. These will be designed to encourage a problem-based approach to learning with students required to reflect on the skills and knowledge they will need in order to tackle the assessed cases. Students will work in groups and will be expected to make use of the skills development pack on group work. Class sessions will link to the case studies in a variety of ways, for example introducing a case for students to prepare outside the classroom, or providing an opportunity for students to ask questions in a form of role play. A range of websites and recommended readings will provide the students with background material relevant to the formal assessment for the module.

Indicative Content

Loans and overdrafts
Sources of funds
Assessing small business performance and prospects (analysis of data using techniques such as ratio analysis and break-even analysis, and analysis of business risk)
Terms and conditions for the provision of finance (pricing risk, taking security etc)

Indicative Reading List

Each year the Module Guide will contain a revised list of indicative texts and websites which are suitable to support the learner.

Anderson P (1992) Bank lending: a practical introduction, Estover, Northcote House

Berry A et al (1993) Bank lending: beyond the theory, London, Chapman & Hall

Rouse C N (1989) Bankers' Lending Techniques, London, Chartered Institute of Bankers

Rouse C N (1992) Applied Lending Techniques, London, Chartered Institute of Bankers

Storey D (1994) Understanding the small business sector, London, Routledge

Assessment Criteria(Degree students)

Learning Outcome	Assessment Criterion (where assessed)	Level descriptors
Learning Outcome	Assessment Criterion (where assessed)	fail	PASS	2.2	2.1	First
Outcome 1	Both assignments	Inaccurate account of forms of finance	Some coverage of advantages and disadvantages of different forms	Appropriate coverage	Thorough coverage	Options fully evaluated
Outcome 2	Both assignments	Inappropriate factors	Description of main factors	Application of main factors	Detailed application of factors and assessment of their importance	Extensive application and thorough assessment
Outcome 3	Both assignments	Poor analysis	Accurate analysis	Rigorous analysis	Complete and rigorous analysis	Insightful and extensive analysis
Outcome 4	Both assignments	Failure to identify questions	Limited range of questions	Good range of relevant questions	Thorough coverage of key questions	Questions raised in an incisive and coherent way
Outcome 5	Both assignments	Lack of recommendations	Obvious recommendations (e.g. to lend or not to lend)	More developed recommendations	Detailed recommendations	Comprehensive recommendations
Outcome 6	Both assignments (one of them based on group work)	Poor presentation	Limited use of standard presentational techniques (referencing, bibliography etc.)	Clear use of techniques	Well-organised presentation	Outstanding presentation

Table of coverage of common skills for HND students

Learning Outcome	Assessment Criterion (where assessed)	Level descriptors
Learning Outcome	Assessment Criterion (where assessed)	fail	PASS	Merit M-	Merit M+	Distinction
7 Work effectively as a member of a team	Group assignment	No participation	Participation and a report on group work produced	Participation and a clear, thorough report	Participation and an evaluative report	Thorough consideration of implications of working in a group
8 Receive and respond to a variety of information	Both assignments and exam	Information merely repeated	Attempt to evaluate information	Identification of some basic limitations of the information	Attempt to expand the information provided by asking relevant questions	Good range of relevant and appropriate questions asked
10 Communicate in writing	Individual assignment and exam	Meaning unclear. Vocabulary and grammar misused	Basic structure, with overall meaning clear	Argument develops. Good use of grammar and vocabulary	Good flow of ideas and good overall use of language	Excellent use of language and very clearly structured development of ideas
11 Participate in oral and non-verbal comms	Both assignments	No participation	Particpation in some discussion	Draws on contributions of other people	Responsive to others	Good range of appropriate responses
12 Use information sources	Both assignments and exam	No evidence of research	Basic research from most obvious sources	Range of relevant sources used	Wide variety of sources drawn on in an appropriate way	Excellent up-to-date sources used effectively
14 Identify and solve routine and non-routine problems	Both assignments and exam	Unclear about nature of problem	Clear about nature of problem	Some ideas put forward for dealing with problem	Range of appropriate ideas put forward	Options carefully evaluated to identify a solution
15 Apply numerical skills and techniques	Both assignments and exam	Serious errors in use of number	Basic techniques used with few errors	A range of techniques used accurately	Clear evidence of choosing appropriate techniques	A good range of appropriate techniques used and justified
16 Use a range of technological equipment and systems	Both assignments	Little evidence of use of technology	Use of a limited range of techonologies	Accurate use of a wide range of technologies	Appropriate use of several technologies	Excellent use of technology integrated into assignment work

Sheffield Business School, Howard Street, City Campus, Sheffield Hallam University, Sheffield, S1 1WB
Student Support - All Full Time students: Student Help and Information Point, Level 1, Stoddart, City Campus Telephone 0114 225 5256
Part Time Postgraduate and Doctoral students: The Welcome Point, Level 1, Stoddart, City Campus Telephone 0114 225 2820