Small and Medium Enterprises are very important part of both developed and less developed national economies. The European Union experience shows that it has a significant contribution to the GDP and to the reduction of the unemployment rate. In Romania, as in many countries in the area, there is still a long way ahead for reaching an adequate support for SME development potential. Romania has a sector which, although has recently followed a positive trend, it possess performances which are still low in comparison with the countries from European Union, including the countries which entered the European Union in May 2004. The paper highlights financing methods used by SME, the reasons for the present situation as well as the measures thought to be the best for its improvement. In order to amend the situation the Romanian SME are in, Romania must take multiply sided actions, the main role being assigned to government, banks and guaranteeing institutions, that must develop a series of transparent, efficient and correct instruments.

SME's, financing, credit, leasing, guaranteeing funds, structural funds