Due to the continuous confrontation with the problem of finding appropriate sources of financing, but also insufficient knowledge of alternative sources, entrepreneurs need to look for new financial sources. Therefore, this thesis, for its purpose had to present alternative sources of funding and volume of their usability in the Republic of Croatia. The aim of this thesis was to present the available alternative sources of financing of small and medium enterprises (SMEs) in the Republic of Croatia, but also to research the knowledge, experiences and opinions of small and medium enterprises about them. Thus, in order to show in more detail the reasons for (non) use of alternative sources of financing by Croatian SMEs, two surveys were conducted, one using a questionnaire and the other, through an in-depth interview. The survey included 91 respondents, and it was shown that entrepreneurs were most often financed with their own sources and that they do not have sufficient knowledge about alternative sources of financing. Also, it turned out that EU funds were the most represented as a form of alternative financing among entrepreneurs. The aim of conducting in-depth interviews was to find out the experiences and opinions of entrepreneurs on alternative sources of financing, and it was found that entrepreneurs are facing with the lack of information, but also in excessive bureaucratic requirements and the use of alternative sources of financing. intent on obtaining these sources. Therefore, it has been shown that in order to increase the use of alternative sources, a significant reduction in the domain of bureaucratic requirements is needed, but also greater help and encouragement of entrepreneurs in the form of mentoring, education and easier access to various other information. Doing that, an increasing number of entrepreneurs would be encouraged to use alternative sources of financing, both in starting and developing their business.