Businesses may no longer need traditional collateral such as landed property to access financing if they can demonstrate strong cash flows and maintain credible banking records, according to Absa Bank Ghana.

According to the Director of Commercial Banking at Absa Bank, Eric Tsiri, many entrepreneurs are denied financing not because they lack collateral, but because they fail to build the financial records and credibility that lenders require to assess risk.

Speaking on the on-air series of the 2026 Citi Business Festival with Bernard Avle, Mr. Tsiri challenged the widespread perception that collateral is the primary requirement for accessing credit.

“Contrary to popular opinion out there, it’s not every financing of a bank that requires a collateral,” he stated.

He explained that banks are increasingly evaluating businesses based on transaction histories, turnover patterns and future cash flows rather than solely relying on physical assets.

Using the example of a company awaiting payment from a reputable client, he said lenders can provide financing against receivables without demanding traditional security.

“Your track record, your payment history and all that can be collateral.”

He added that character and business credibility remain critical factors in credit assessment.

“One of the things that rang very high is character. How consistent you’ve been with your suppliers, how consistent you are with your bank, how well you run your business.”

Mr. Tsiri further indicated that technological innovation is helping broaden access to financing.

According to him, fintech companies are using alternative data and digital credit-scoring models to evaluate borrowers more quickly and efficiently than traditional lending methods.

“They use other data points to credit score the business and credit score individuals. They are quicker because they are using technology.”

Rather than viewing fintech firms as competitors, he said banks are increasingly partnering them to combine technology-driven credit assessments with established banking risk-management systems.

“We don’t necessarily see them as competitors, but we see them as co-conspirators in this ecosystem.”

The development signals a shift in Ghana’s lending landscape, potentially opening new financing channels for SMEs that have historically struggled to meet conventional collateral requirements.