This paper deals with the research of small and medium enterprises sector in the Republic of Croatia. The aim of this paper is to explore the current financing opportunities available to small and medium enterprises and to explore the perception of small and medium enterprises in terms of access to financing. In recent years, SMEs have become increasingly important in terms of the number of people they provide jobs with and in generating the added value. Company financing conditions are an important aspect of the business climate that has a strong impact on the business environment and business performance of all companies, espe-cially small and medium-sized enterprises. Small and medium-sized enterprises face limited opportunities when it comes to access to finance comparing to large corporations, and the reason lies in the characteristics of small and medium-sized enterprises as well as aspects of the business climate. For example, the lack of capital in SME sector discourages banks and consequently makes it more difficult for small and medium-sized enterprises to access the capital. The research shows that different business climates in individual countries affect the better or worse performance of the SME sector, and Croatia achieves poorer results compared to more advanced EU countries. Small and medium-sized enterprises in the Republic of Croatia are mostly financed with their own funds. There is a positive trend in developing alternative sources of financing, but SMEs in the Republic of Croatia still mostly use traditional sources of financing, loans from domes-tic banks and leasing. As access to finance is necessary for companies to provide liquidity, especially now in time of pandemic caused by the Covid 19 virus, it is necessary to provide entrepreneurs with access to funds that will help them survive and ensure the continuation of business. Entrepreneurs continue to obtain funds mostly in the traditional way, due to insuffi-cient information, but also due to fear and inexperience in using new sources.