Small and medium sized enterprises (SMEs) play a crucial role in the socio-economic development of a country through business opportunities, employment generation and poverty alleviation. However, constraints on the provision of finance to SMEs is a key challenge faced by developing countries. Most of the empirical studies on SME financing constraints are based in developed economies, with limited applicability to developing countries like Bhutan with a different level of economic and financial development. Though the SME financing constraint is widely recognised by the Royal Government of Bhutan (RGoB), academic research has not been carried out on the Bhutanese SME sector. The primary aim of this study is to investigate the cause and nature of the SME financing constraint, in terms of accessibility to bank loans, in Bhutan