Abstract
Purpose – The basic purpose of this paper is to analyze the debt financing of small and medium-sized enterprises (SMEs) in Pakistan through different modes from conventional and non-conventional (Islamic) institutes.
 Design/Methodology/Approach – Data is publicly available on databases and websites about debt financing of small and medium-sized enterprises (SMEs) of Pakistan, thus data is collected from these databases and websites in the form of articles and handbooks about Pakistan.
 Findings – It is found from the analysis that a lot of financing choices and modes are available for small and medium-sized enterprises (SMEs) in Pakistan. These modes are provided by both conventional and non-conventional (Islamic) financial institutes. All the debt modes are discussed in the paper. In addition, there are some drawbacks of debt financing that arises from conventional and non-conventional (Islamic) financial institutes, which alleviate small and medium-sized enterprises (SMEs) from adopting these modes
 Research Limitations/Implications – Some financial institutes, especially banks, lack knowledge and information about small and medium-sized enterprises (SMEs) in Pakistan. Banks could lessen it by acting as a mediator for small and medium-sized enterprises (SMEs).
 Originality/Value – This review paper's main contribution is to analyze the contribution of financial institutes in debt financing small and medium-sized enterprises (SMEs) in Pakistan. Paper discusses all the modes available for the small and medium-sized enterprises (SMEs) in Pakistan thoroughly through conventional and non-conventional (Islamic) financial institutes.
Highlights
Debt finance availability for small and medium enterprises (SMEs) is a topic of important research concern to academics and around the world, an issue of excessive significance to policymakers
Research shows that debt financing supports small and medium enterprises with different financing instruments
Small and medium enterprises have a significant contribution to the economic growth of Pakistan
Summary
Debt finance availability for small and medium enterprises (SMEs) is a topic of important research concern to academics and around the world, an issue of excessive significance to policymakers. Financial institutions in Pakistan have different structures and lending infrastructure due to which system affects SMEs' finance availability These financial institutions are the sources of credit availability The sources of finance government of Pakistan interest in improving small and medium enterprises (SMEs) and making policies about external finance. These sources used different modes of finance. Different finance modes are factoring by a bank, trade credit, short term loan, personal funds, overdraft, and working capital These are short-term modes of finance that are provided for small and medium enterprises (SMEs). Commercial paper, project finance, and long-term loan; are the extended tenure modes of finance for SMEs
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