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Introduction: According to the existing research, one of the key determinants of a company’s survival and market development is its ability to get bank loans or other external sources of finance for business expansion.

Purpose: The study aims to explore the factors affecting access to finance and their effects on the development of medium- and small-sized businesses. These factors include business size and age, profitability, the length of a company’s association with a commercial bank, and banking sector characteristics.

Need for the study: It is particularly crucial for small- and medium-sized businesses since they often have trouble getting funding from banks because they don’t supply the banks with the information they need to assess their loan application prospects, however, when a company’s economic and financial situation improves, banks get access to more information about the firms, and financing is thus more readily available.

Methodology: This research is based on qualitative methods, focus on an elaborative study of the existing literature, and provide suggestions based on the same.

Findings: The findings show that small- and medium-sized businesses, like those in other European nations, have less access to finance than large businesses. It revealed that the company’s size, liquidity, profitability, and banking industry state significantly influence the availability of bank loans.