This diploma thesis deals with an analysis of the credit process in small and medium enterprises. First part describes financial risks, to which banks are exposed with a special emphasis on a credit risk. The next chapter describes the process of a risk management, particularly its individual phases such as identification, measurement, securing and monitoring. The third part discusses each phase of the loan process that represents the risk mitigation strategy on the level of a single trade. In the forth part a loan application of a particular applicant is being thoroughly analysed. The last, fifth part sums up a development of conditions on a credit market in small and medium enterprises.

This master thesis deals with possibilities and conditions of entry on challenging market in Russian Federation from the point of view of setting up of company or purchasing of a existing one and also from the point of view of specifications, which are existing only just in Russia. The assignment is geographically defined on Leningrad region with focus on the urban center St. Petersburg and with branch specified on construction industry. On basis of analyzed facts in the field of accounting standards, taxation and law environment this assignment contains the recommendations in which way and with help of which procedures enter the market.