The article presents the scope of use of various forms of financing for small and medium-sized businesses. Only one fifth of companies uses retained earnings to finance development. In over 40 % companies expansion is financed from overdraft, while in every third business from bank loans in a credit account. Small businesses face many barriers such as lack of collateral, high costs and the high risk of bankruptcy when they want to use bank credit. This speeds up financing investments with leasing and operating activities through factoring. In 2013, the percentage of firms using leasing and factoring in Poland and in the European Union was similar and amounted to over 38%. Companies in Poland benefited from subsidized bank loans to the same extent as in the EU.