The Influence of Collateral Availability on Access to Credit by Small and Medium Enterprises (SMEs) in Meru County

Purpose: Small and Medium Enterprises (SMEs) significantly contribute to both social economic development of people largely through their roles in job innovation creation, revenue generation. Majority SMEs are undercapitalized due inaccessibility credit facilities. This adversely influence capacity invest productive ventures realize corporate goals. Factors that SMEs’ access not well known. Thus, the current study sought establish collateral availability on by Meru County.
 Methodology: The was guided theory information asymmetry pecking order theory. based descriptive survey design. targeted 204,810 County which 384 SME owners were sampled using stratified sampling. Quantitative data analyzed inferential statistics.Qualitative analysed thematically.
 Findings: found majority able from SACCOs but MFIs Banks without necessarily having provide since guarantors’ savings act as security for loans.
 Recommendations: recommend should ensure they do have negative listing CRB increase chances accessing credit. also acquire training how prepare maintain proper financial statements.