Abstract: The quest being sought by policy makers and resource managers for rural household to engage into forestry-based livelihood for optimal ecological functions is by developing economic incentives. This study sought to use trees in woodlot as households collateral asset as a strategy for lengthening tree harvesting period. Two sets of questionnaires were developed; that’s for rural homes and for credit financing institution. Multi-stage and systematic random sampling of 224 rural homes was sampled. While 76 questionnaires in 19 identified financial institutions within study area, where respondents from identified sections in the banking service namely; Customer services, Branch business, Retail and Consumer services and Management were randomly selected to evaluate credit worthiness of trees in woodlot.