The paper analyses of the situation and perspective of factoring financing in the Republic of Croatia. It is based on the SAFE survey conducted among entrepreneurs and combines quantitative data with analytical approaches. In the introduction, the research context is set by defining the problem of insufficient awareness and understanding of factoring as an alternative source of financing among entrepreneurs. Through the SAFE survey, the attitudes of entrepreneurs on the use of factoring and other sources of financing were analyzed. The results indicate a low perception of the relevance of factoring and a stable share of users in the EU27. Industrial and export companies and larger players are more inclined to use factoring. Based on the obtained results, it is concluded that despite the advantages of factoring, low awareness and insufficient education of entrepreneurs limit its use. Further research can be focused on a deeper analysis of barriers, comparison with global trends and analysis of regulatory frameworks to encourage greater use of this financial instrument. The implications for the economy emphasize the need to support the diversity of financial sources and encourage innovation in the financing of small and medium-sized enterprises.