The purpose of this study was to analyze the factors affecting the availability of credit facility by Smallrnand medium enterprises (SME's). Small and medium enterprises (SME's) play a really significantrnrole within the economy of any country. They provide employment and improve the quality of livingrnof individuals-both the employers and employees. They are a major source of entrepreneurial skillsrnand innovations; the objective of this study was to identify factors that affect credit access by SMEsrnin Addis Ababa. This study was intended to be of great importance to individual entrepreneurs,rnpotential investors, lending institutions, and the county government of Ethiopia to facilitaternenabling credit policies and other researchers. The target population was 6730 SMEs operating inrnAddis Ababa. The study used stratified random sampling and then applied the simple randomrnsampling to select respondents from the selected stratas out of which 673 respondents werernselected. Data was gathered using questionnaires. The data collected was subjected to correlationrnanalysis and multivariate analysis was administered to determine the connection between thernidentified factors and credit uptake. It was then presented in tables and graphs. From the study, itrnemerged that number of financial institutions, interest rate charged on loans, collateral security,rnlevel of literacy and firm characteristics are the most significant factors that affect availability ofrncredit facility among SMEs in Addis Ababa. The study recommends that: informal borrowing theyrnought to be discouraged through trainings, There was got to seek alternative means of collateralrnsecurity, there's got to continuously educate SMEs on the way to manage finances, prepare books ofrnaccount, prepare income and expenditure statements and the way to organize budgets. Thernresearcher also recommends that the number of financial institutions can be increased by formationrnof saving and credit association for different categories to improve the level of financial expanding.