1. Discuss the demand for credit by companies. - For operating purposes - to meet cyclical cash needs. Investment - for buying new equipment, machine, or mergers etc. Financing purposes - occurs less frequently - for paying off loans, paying dividends, stock repurchases etc. 2. Discuss the sources of credit for a company. Non-bank financing, trade credit, Bank loans, publicly traded debt, Lease financing etc. 3. Advantages of lease financing Less initial cash investment required. Lower monthly payments. Tax benefits. Conserve your capital. Avoid technological obsolescence. Assist corporate growth. Fixed rate financing 4. What macroeconomic and industry factors affect the credit risk of a company. Industry competition Buyer power Supplier power Threat of substitution Threat of entry