This article analyzes the integration of small business entities into digital lending systems and the effectiveness of innovative financing mechanisms through commercial banks. Digital lending plays a crucial role in providing small businesses with quick and easy access to financial resources, thereby promoting economic growth and enhancing competitiveness. The article examines innovative financing tools used by commercial banks, including online credit platforms, microloans, artificial intelligence, and blockchain technologies. The research findings confirm the positive impact of digital lending mechanisms on the development of small businesses and offer recommendations for improving the efficiency of this process. Additionally, the article emphasizes the importance of financial literacy, legislation, and digital infrastructure for the advancement of digital financing systems.

small business, digital lending, commercial banks, innovative financing, financial technologies, blockchain, artificial intelligence, microloan, digital transformation, economic development.

Islomov, O. (2021). Modern Methods of Financing Small Businesses in the Context of Uzbekistan. Tashkent: Economy Publishing House.

Qodirov, S. (2022). Innovative Financing Instruments and Small Business. Financial Research Journal, 3(5), 45-57.

Karimova, N. (2023). Legal Foundations of Digital Lending Systems. Journal of Law and Finance, 12(2), 112-126.

Chen, M., & Lee, J. (2020). Digital Lending and SME Financing: Challenges and Opportunities. Journal of Financial Innovation, 7(1), 23-39.

Johnson, L. (2021). Innovative Financing Mechanisms in Commercial Banking. International Banking Review, 15(4), 67-82.

Smith, P., et al. (2022). Digital Financial Services for SMEs: A Global Perspective. Global Economic Journal, 9(3), 101-119.