An important means to address delinquency is through proper client selection. Cash flow and credit and background investigation are techniques use to select clients properly. This course provides an in-depth discussion of two aspects of character and capacity-based lending: cash flow analysis and credit and background investigation (CI/BI). The provision of microloans relies on these in approving loan applications because microentrepreneurs have little or no collateral, and the cost of collateral registration usually exceeds the amount of the loan. The course emphasizes the importance of client selection procedures in sustaining MFI operations. Many microfinance institutions face delinquency problems when inadequate attention is given to client selection. The training is participatory, with exercises on cash flow analysis and simulations of CI/BI interviews. Participants will also be given tips for collection, client monitoring and follow-up.