Small and medium entreprises (further in the text SME) are of utmost importance for national economy with more than 99% of all companies in Croatia and EU being SME's. One of the many challenges that SME's face are related to access to financing. Access to financing is an important component of the entrepreneurial ecosystem of a country whose development in Croatia, according to the GEM Research, is below-average. The availability of various sources of SME financing depends on the stage of the life cycle of the enterprise which can be defined by different needs of the company as well as the interests of particular sources of financing. At its very beginning, an enterprise can be funded with its own capital and/or initial earnings from the company, trough aggressive savings as well as the money from friends and family. As the company grows and develops, business angels are available for the company as well as various government incentives. PE/VC funds are available for fast-growing companies considering the nature of this particular source of financing, while bank loans are available throughout the entire life cycle of the company, with significantly different conditions depending on the stage. Also, the company can be financed by leasing, through credit unions, initial public offering of company shares and other alternative sources. There are different prerequisites that the company must meet in order to receive external financing. Indicators based on a business plan for beginner entrepreneurs, financial analysis using financial indicators as well as discounted cash flow method can provide the enterprise and potential investors with information about the „financial health“ of the company. This information can give the company an insight into their own readiness to receive certain forms of external financing and to potential investors about the profitability of their future investment.