The realisation that management today is increasingly about managing intangible resources is beginning to dawn on business managers and academics alike. Intellectual capital has been identified as the key intangible resource in firms. Consequently, ensuring that managers understand this, and that organisational structures and cultures reflect this, is fast becoming a matter of organisational survival. Therefore commercial banks will need practical methods that can be used to quickly increase understanding and commitment to these intangible resources.This study's main objective is to assist first time readers to understand the concept of intellectual capital in the South African banking sector. At the same time this study investigates if South African Commercial Banks do take this important balance sheet item in account when evaluating financial statements of SMME's.This study is investigative of this knew phenomena, and are backed by a comprehensive literature review and empirical study. The literature gives an overview of who entrepreneurs are, as they are the only creators of job opportunities in the South African economy.Secondly, the focus moves to the high failure rates of SMME's and how can they successfully apply for finance. Thirdly, credit evaluation are taken under investigation, and the role commercial banks can play to be more innovative when deciding on approval of a application, as well as the role of intellectual capital in the credit evaluation process.The empirical study consist of two questionnaires that was e-mailed to respondents, as well as personal interviews were held. Fifty commercial clients and 10 credit managers of the five biggest commercial banks in South Africa formed part of this study. The objective of this study was to determine if South African Commercial banks do take intellectual capital in consideration during the credit evaluation process. Recommendations are also made on how commercial banks can be more innovative to adhere to their clients needs. This study is of value not only for Commercial banks, but also for entrepreneurs who want to know what criteria commercial banks use to make a financial decision.