prepay, we show that high prepayment risk can trigger credit rationing by the bank. However, an upfront fee, which allows the …

We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm …'s marginal financing decision and its effects on corporate investment. We show that firms with more growth options, higher … bargaining power in default, operating in more competitive product markets, and facing lower credit supply are more likely to …

screen out high credit risk and potentially increase access to credit for small business owners in Peru. We use … entrepreneurs who were offered a loan based on the traditional credit-scoring method versus the EFL tool. We find that the … entrepreneurs - i.e., those with a credit history. For unbanked entrepreneurs - i.e., those without a credit history - using the EFL …

nor to observable firm characteristics at the initiation of the new loan, such as for example credit risk. It also does …