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Informal businesses may be able to access finance without a formal credit history by showing lenders reliable evidence of how the business operates: sales, expenses, orders, invoices, inventory and incoming payments. Some providers use these records, digital-payment data or other alternative assessments to evaluate businesses with thin or no credit files. None guarantees approval; available lenders, eligibility rules and terms depend on the country.
What lenders can use instead of a credit file
A credit history is one way to estimate repayment risk, not the only possible source of information. In a March 2024 research note, CGAP describes sales, expenses, orders, invoices, inventory and other operating records as transactional data that can help assess micro and small enterprises. Two Indian fintech case studies found that transactional data could have similar predictive power to credit history, and that combining both could improve predictions. Those findings are specific case studies, not a promise that every lender accepts these records or will approve an applicant. CGAP’s analysis also estimates a US$4.9 trillion financing gap for micro and small enterprises, using its March 2024 scope and methodology.
Operating records
Consistent records can make business activity easier to verify. Keep a daily or weekly log of sales and expenses, along with supplier orders, invoices, inventory notes and available customer or platform sales summaries. A paper ledger is useful if bookkeeping software is unavailable, but it does not replace any lender-specific documentation, collateral or guarantor requirements.
Digital payment records
Where practical and safe, accepting bank transfers, mobile money or e-wallet payments can create statements or transaction histories that show incoming revenue. A World Bank analysis reported in February 2026 examined nearly 50,000 firms surveyed since 2021 across 101 economies. Firms receiving electronic payments were about 3 percentage points less likely to be fully credit constrained. The authors report an association, not proof that switching payment methods will cause a particular business to qualify for a loan. Read the World Bank analysis.
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Alternative assessment methods
Some providers or projects assess businesses using transaction, mobile-money, platform or psychometric information, especially when conventional financial statements or credit files are absent. For example, an IFC project disclosure for Côte d’Ivoire described psychometric scoring for informal and non-scorable MSMEs lacking collateral and business financial data, alongside local financial institutions and Creditinfo West Africa. The disclosure was last updated April 18, 2023, and gave an estimated project end date of November 21, 2025; it is an example of an approach, not evidence of a currently available loan offer. See the IFC project disclosure.
Where to look for financing
Potential channels include local banks, microfinance institutions, digital lenders and embedded finance offered through a commerce or service platform. CGAP describes a micro-retailer model in which a commerce platform shares transactional data for credit scoring while a fintech or finance provider supplies credit. A channel’s presence does not establish that it serves informal businesses in your location, or that its terms are suitable. CGAP’s embedded-finance research discusses this model.
CGAP estimated nearly 500 million micro and small enterprises worldwide and a $5 trillion financing gap in June 2025. These are global estimates for micro and small enterprises, not a count or financing-gap estimate for informal firms alone. See CGAP’s report overview.
How to prepare before applying
- Organize a consistent record. Track business sales and expenses at least weekly. Keep invoices, supplier orders, inventory records and platform sales summaries where available.
- Preserve proof of incoming payments. If digital payments make sense for your customers and business, retain statements or transaction summaries. Ask each prospective lender which records it accepts and whether incoming transaction data factors into underwriting.
- Ask providers about eligibility. Contact local regulated banks, microfinance institutions and digital lenders. Ask whether they serve informal businesses, what evidence they accept, how long the business must have operated, and whether they require collateral or a guarantor.
- Check how alternative data is used. Ask what personal and business information is collected, how it is stored, whether it is shared with other parties and how you can raise a complaint.
- Match repayment to cash flow. Work out the full amount due and compare the payment dates with the business’s actual income pattern, including seasonal or irregular periods.
Compare offers on the terms that affect your business
There is no country-specific lender list, rate or eligibility rule that applies to every informal business. Compare actual offers using the points below rather than assuming that a digital or alternative-data loan is automatically easier or cheaper to repay.
| What to compare | Questions to ask |
|---|---|
| Total cost | What is the full amount repayable, including interest, fees and any other charges? |
| Repayment schedule | How much is due, how often, and over what term? Do the dates fit the business’s cash flow? |
| Late-payment consequences | What happens if a payment is late or missed? |
| Collateral and guarantors | Is security or a guarantor required? What happens if the business cannot repay? |
| Eligibility and evidence | Which records are accepted, and are there minimum business-age or other requirements? |
| Data permissions | What data will the provider collect, retain and share, and for what purposes? |
| Provider oversight and recourse | Is the provider licensed or otherwise regulated where required, and how can you make a complaint? |
The World Bank warns that digital-credit pricing can be incomplete or unclear and that some models have caused consumer harm. Its Digital Credit overview explains why checking the full obligation, data practices and complaint options matters before borrowing. IFC’s 2026 report overview describes how alternative data—from mobile-money transactions and digital payments to business and platform records—can help scoring models capture economic activity that conventional assessment may miss. This can make a business more visible to a lender; it does not remove the need to assess affordability or verify the provider’s terms. Read IFC’s report overview.
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