International Journal of Economics, Commerce and Management United Kingdom Vol. III, Issue 11, November 2015 Licensed under Creative Common Page 250 http://ijecm.co.uk/ ISSN 2348 0386 CHALLENGES FACED BY SMALL AND MEDIUM-SIZE ENTERPRISES IN ACCESSING CREDIT FACILITIES FROM FINANCIAL INSTITUTIONS: AN EMPIRICAL ASSESSMENT INCORPORATING THE PERCEPTIONS OF BOTH BORROWERS AND FINANCIERS Henry Kofi Mensah Department of Human Resources and Organizational Development School of Business, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana hkmensah@knust.edu.gh Samuel Awuni Azinga Department of Human Resources and Organizational Development, School of Business, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana Jane Akwele Mawuena Sodji Tropical Haven Ghana Limited, Accra, Ghana Abstract This study identified challenges faced by borrowers, precisely small and medium-size enterprises in accessing credit facilities from financial institutions. Similarly, the paper identifies the extent to which both financiers and borrowers agree to challenges believed to hinder lending to SMEs. . A questionnaire survey method was used to collect data from 300 participants – 150 each of SMEs and bankers in Stanbic Bank Ghana Limited. Findings were presented using Pearson correlation test, simple linear regression analysis and the arithmetic mean. Findings revealed several challenges, which were commonly perceived by bankers and borrowers. Some of these challenges are high inflation; lack of adequate capital; high interest rate in the capital market, and exchange rate fluctuation. There was a strong positive relationship between challenges perceived by borrowers and challenges perceived by bankers. This relationship is