A Solution for Thai Small-Scale Entrepreneurs: Accessing Capital Without Collateral

Published 2026-10-13

At the 2026 IMF and World Bank Annual Meetings, a key issue affecting small-scale entrepreneurs in Thailand was raised: the difficulty of accessing capital for businesses without fixed assets, such as land or buildings, which remains a major obstacle for small operators looking to start or expand their businesses today.

Experts at the event analyzed the challenges faced by Thai entrepreneurs, noting that traditional lending systems prioritize collateral. This leaves individuals with innovative ideas or high-potential businesses unable to secure funding from financial institutions, making grassroots economic growth difficult to achieve.

The solution proposed at the forum is to shift risk assessment models by utilizing alternative data instead of relying solely on collateral. By analyzing digital transaction histories, cash flow, or payment behavior, banks can more accurately assess a business's potential, even if the business does not own land or buildings.

Furthermore, discussions were held regarding the role of the government and financial institutions in creating support mechanisms, such as credit guarantees or the use of financial technology (FinTech), to reduce costs and provide small operators with easier and faster access to formal financing.

In conclusion, adapting the financial system to the modern era is a key factor in driving the Thai economy. If these concepts can be implemented effectively, it will provide small-scale entrepreneurs with the opportunity to grow and contribute to the long-term stability of the nation's economy.

Sources: Techsauce

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