Informal businesses may be able to access finance without a formal credit history by giving lenders other evidence of how the business operates: sales and expense records, orders, invoices, inventory, and incoming payments. Some lenders also assess mobile-money, platform, or other alternative data. These records can make a business easier to assess, but they do not guarantee approval; available lenders and requirements vary by country.
What can a lender assess besides a credit history?
A credit file is one possible source of underwriting information, not the only one. Consistent business records can show trading activity and cash flow even when a business has never borrowed formally.
As an Amazon Associate I earn from qualifying purchases.
- Sales and expenses: daily or weekly totals help show revenue patterns and operating costs.
- Orders and invoices: customer orders, sales invoices, and supplier invoices can document transactions.
- Inventory: stock records can help show what the business buys and sells.
- Incoming payments: bank, mobile-money, or other digital-payment statements can provide a verifiable transaction trail.
- Platform records: sales summaries from a commerce platform may be useful where a lender accepts them.
CGAP’s March 2024 research note describes these operating records as transactional data. In two Indian fintech case studies, transactional data had similar predictive power to credit history, while combining the two could improve predictions. That is evidence from particular case studies, not a promise that every lender will use these records or that they will replace its requirements. CGAP, “Leveraging Transactional Data for Micro and Small Enterprise Lending”.
Recommended Free Tools
Can digital payments help?
They can make revenue more visible when a lender considers incoming transaction data. In a 2026 analysis of nearly 50,000 firms surveyed since 2021 across 101 economies, the World Bank found that firms receiving electronic payments were about 3 percentage points less likely to be fully credit constrained. This is an association in the study, not proof that accepting digital payments will cause an individual business to receive credit.
#1 Best Overall
The World Bank authors explain: “When firms receive payments digitally—through bank transfers, mobile money, or e-wallets—they generate verifiable transaction trails.” If digital payments are practical and safe for your business, retain statements or reports showing incoming payments and ask lenders whether they use that information in underwriting. World Bank, “When digital payments unlock access to credit: New evidence from firms in 101 economies,” February 24, 2026.
Where might informal businesses look for finance?
Potential channels include banks, microfinance institutions, digital lenders, and finance offered through a business or commerce platform. The names and availability of providers, products, and eligibility rules depend on the country, so ask local providers directly whether they serve informal businesses.
Alternative scoring and local examples
Some lenders and projects explore assessment methods beyond conventional credit files. An IFC project disclosure for Côte d’Ivoire describes work using psychometric scoring for informal and non-scorable micro, small, and medium enterprises (MSMEs) that lacked collateral and business financial data, alongside local financial institutions and Creditinfo West Africa. The disclosure was last updated April 18, 2023, and listed an estimated project end date of November 21, 2025. It is an example of an approach, not evidence of a currently available loan offer. IFC project 607192, “Côte d’Ivoire Psychometric Scoring for MSME A2F”.
Embedded finance
In an embedded-finance model, a commerce platform may share transactional data for credit scoring while a fintech or finance provider offers credit. This is a possible channel, not a guarantee that a platform in your market offers loans or that its offer is suitable. CGAP, “Empowering Small Giants: Inclusive Embedded Finance for Micro-retailers”.
How to prepare before applying
- Start a consistent record. Track business sales and expenses daily or weekly. Keep supplier orders, invoices, inventory records, and customer or platform sales summaries when available. A paper ledger can help organize information if bookkeeping software is unavailable, but a lender may still require specific documents or conditions.
- Gather payment evidence. If you accept digital payments, save statements or reports showing incoming payments. Ask each prospective lender which records it accepts and whether transaction data affects its assessment.
- Ask about eligibility before submitting an application. Contact local regulated banks, microfinance institutions, and digital lenders. Ask whether they serve informal businesses and what they require for business records, operating tenure, collateral, or guarantors.
- Compare offers against your cash flow. Work out the total amount repayable and check that each payment date and amount fits the business’s actual income pattern, including seasonal or irregular periods.
- Check data use and recourse. Ask what personal and business information the provider collects, how it is stored and shared, and how to raise a complaint. Verify the provider’s licensing and complaint process using the relevant local authorities or official channels.
How to compare financing options
If you have more than one offer, compare the terms side by side rather than relying on the advertised payment amount alone.
| What to compare | Questions to ask |
|---|---|
| Total cost and fees | What is the full amount repayable, including all fees and charges? |
| Repayment schedule and term | How much is due, how often, and for how long? |
| Collateral, guarantor, and business-age rules | What security, guarantor, or operating history is required? |
| Evidence for underwriting | Will the provider consider ledgers, invoices, inventory, digital payments, or platform records? |
| Data permissions | What data can the provider access, use, retain, or share? |
| Provider oversight and complaints | Is the provider licensed where required, and what official complaint route is available? |
| Fit with cash flow | Do the due dates and amounts work during slower or seasonal periods? |
Digital credit pricing can be incomplete or unclear, and some models have caused consumer harm, according to the World Bank’s digital-credit overview. Read the terms and obtain the complete repayment obligation before accepting an offer. World Bank Digital Finance Inclusion, “Digital Credit”.
Rank #4
- Easy To Track Your Finances: HAUTOCO accounting ledger book keeps you on top of your expenses and income! Help you keep your money organized, spend well, and set and achieve financial goals
- Premium Material: The A5 accounting ledger book has a total of 120 pages and 2040 lines of entries. It is made of 100gsm thick paper to reduce ink leakage; it is equipped with a waterproof and sturdy PP cover to protect the inner pages
- Practical Design: Compact 8.3 x 6.2'' expense tracker notebook is easy to carry and features information pages, 2025 calendar, yearly financial goals page, and PVC pocket for storing important tickets and loose items
- Manage Your Finances Effectively: Undated accounting books with number, date, description, account, payment or deposit amount, and total balance. You will be able to easily analyze your financial activities and quickly prepare accurate financial statements
- Ideal For Small Business or Personal Use: An accounting log journal can track your business or personal financial status. With a clear record of transactions, you can find unnecessary expenses or fraudulent charges
What the global financing-gap estimates do—and do not—say
CGAP estimated a US$4.9 trillion financing gap for micro and small enterprises in its March 2024 publication. In June 2025, CGAP described nearly 500 million micro and small enterprises worldwide and a US$5 trillion financing gap. These are global estimates with different publication dates and scope; they are not counts of informal businesses alone and do not establish the availability of finance for a particular business or country.
IFC’s 2026 report overview says that alternative data—including mobile-money transactions, digital payments, business records, and platform records—can help scoring models capture economic activity that has gone unrecognized. The promise of such methods is better visibility, not automatic access to a loan. IFC, “Cracking the Credit Code: Alternative Data and AI for Financial Inclusion”. CGAP, “Big Futures for the Smallest Firms: Finance That Works for Nano, Micro and Small Enterprises”.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
