Credit appliance requires the applicant to provide some documents in order to obtain credit or funding from financial institutions. Usually, in the first step of the application, namely the KYC, MSMEs cannot provide the required documents. Many of them are still operating informally.

The lack of legal documents further complicates financial reporting. As such, they often fail to provide credible management and financial records. This is experienced by not only the informal MSMEs but also the formal MSMEs which oftentimes cannot deliver proper financial and transaction records. Even if they are already qualified in the terms of economic capacity, incomplete legal documents and transaction records of their daily business operations still make them unbankable.