The objective of this study is to highlight the influence of entrepreneurs" behaviour on the decisions to apply for bank loans. A mixed research methodology known as triangulation was employed in order to achieve the objective of the study. Data were sourced from a stratified randomly selected sample of 450 Cameroonian SMEs and analysed using logistic regression. The result of the study revealed that both control aversion and overconfidence behaviours of the owner/managers influence significantly the decisions of SMEs to apply for bank loans. From the result, it is found that behavioural finance theory explains the decisions of SMEs to seek for bank credits. Contrary to the predictions of the pecking order theory, managerial behaviours such as the fear to loss the control of the firm, and overconfidence provide explanations on the decisions of SMEs to seek for bank loans. For instance, the fact that debt does not entail any loss of business control urges SMEs to prefer debt than external equity.

The objective of this paper is to determine the primary issue causing commercial banks to lend to SMEs. Indeed, this paper focuses on the supply side approach to bridge the research gap in understanding the financing lacuna, which has often been overlooked due to the tendency to analyse financing gap from the demand side only. The paper discusses the nature of the decision-making process from interviews with bank loan officers utilising verbal protocol analysis to give insights into the decision making of bank loan officers in the processing of bank funding proposals. To achieve the objective of the study, we used a qualitative research approach characterised by the collection of information through semi-structured interviews with loan officers responsible for small and mediumsized enterprises of four (4) commercial banks in Cameroon. The information resulting from the transcription of interviews was analysed using content analysis. The result derived from the analysis revealed that confidence is the paramount issue urging commercial banks to grant loans to SMEs. Indeed, from existing embedded relationship overtime, commercial banks obtain valuable information about the behaviours of SMEs. Based on this information a certain degree of confidence and trust emerges causing banks to supply loans to SMEs. From the aforementioned analysis, we formulate: “The theory of confidence lending decisions of commercial banks.”

The purpose of this study is to determine the influence of socioeconomic characteristics of borrowers on microcredit repayment behaviour. The results of Probit regression statistical analysis using a database of 1805 individual loan contracts, credit records and follow-up files from 2007 to 2014 period by Community Credit of Africa (CCA) in Cameroon, reveal that educational level, awareness about the location of business and/or home of borrowers by the lender, sector of activities, availability of collateral, income stability, and personal wealth of borrowers have a statistically significant influence on microcredit repayment behaviour of borrowers. The outcome of the results shows that microfinance institutions should not only rely on financial indicators to assess the creditworthiness of borrowers. Other factors belonging to the social and economic characteristics of the borrowers are supposed to be integrated in credit risk models. These factors are sought to influence significantly microcredit repayment behaviour of borrowers.

The main objective of microfinance is to provide funds to those who are excluded from the banking system. But in order to attain this objective they have to deal with the issue of default in their loan portfolios. The aim of this paper is to analysis the factors that affect the default of borrowers in microfinance institutions. The discriminant analysis reveals that 96.6% of the bad borrowers are correctly classified and 92.1% of the good borrowers are correctly classified and that other debts, age of borrower, borrowers income and number of dependents significantly affect the likelihood of default. We suggest that credit officers in microfinance institutions should be keen on these factors when granting loans.