This thesis examines the application of financial analysis in the process of approving loans to micro-entrepreneurs. Micro-entrepreneurs represent an important segment of the economy, often characterized by a high degree of innovation and flexibility, but also faced with numerous challenges, especially when it comes to access to financial resources. The aim of the work is to analyze the key financial indicators and methods that banks and other financial institutions use when evaluating loan requests from micro-entrepreneurs. The paper consists of several units that include the theoretical framework of financial analysis, the specifics of micro-entrepreneurs and the practical application of financial indicators in the process of making credit decisions. In the first part of the paper, the fundamental concepts of financial analysis are theoretically addressed, including the analysis of financial statements, types of financial statements such as the balance sheet, income statement, cash flow statement, etc. The second part of the paper focuses on the specifics and importance of financial indicators, namely liquidity, solvency, activity, efficiency, profitability, and investment indicators. The third part provides an analysis of financial statements and creditworthiness assessments using practical examples. Through case studies and real-world examples, concrete methods and tools for risk assessment and credit decision-making are demonstrated. Finally, the paper presents conclusions and recommendations for improving the process of financial analysis and credit evaluation for micro-enterprises, aiming to support their growth and development. It concludes that the effective application of financial analysis can significantly reduce risk for banks and financial institutions while simultaneously facilitating access to necessary financial resources for micro-enterprises.