The formation of credit relationships
This chapter examines the investigating techniques employed by the borrowers for identifying and selecting lenders and vice versa in creating credit relationships and transactions. It examines the terms and conditions agreed upon by creditors and lenders in their credit transactions. It discusses the quantity of the credit extended in the fourteenth-century in terms of its overall value and the average size of individual credit. It also discusses the exploitation and expropriation of the debtors through high levels of interest, loss of land, and pledging of properties in connection with the debts. The chapter also tackles the formation of credit contracts and their terms and conditions, including their effects on mobilization of capital within the creditors, the debtors, and the community as a whole.