Removing obstacles to SMEs' access to financing sources can reduce the credit gap and increase the investment activity of SMEs. Today, small and medium-sized enterprises can choose between different alternative sources of financing. In accordance with the needs of small and medium-sized enterprises and future plans, they can choose an appropriate financing plan. Small and medium-sized business owners can choose from the following alternatives: borrow funds, sell funds, or seek donations. Due to the nature of SMEs, some of these financing options have historically been non-existent or very expensive. This particularly applies to equity financing. Therefore, newer - alternative financing models and an expanded investor base should help reduce the lack of financing for small and medium-sized enterprises. In Croatia, there are many sources of financing that entrepreneurs do not recognize, even though they have great potential. The biggest reasons for this are insufficiently known programs, strict award criteria and guarantees, and the needs of business owners are not taken into account. The most important alternative sources of financing in Croatia come from HAMAG BICRO, HBOR and Croatian ministries. Although there has been an increase in subsidies and guarantees in recent years, it is still not enough. Croatia has not yet recognized venture capital funds or business angels as reliable sources of financing, and they are not even developed in the country. Small and medium-sized enterprises use loans as a dominant source of financial resources. From alternative sources, domestic SMEs use financial products of HABOR as a source of money.