Small and medium enterprises (SMEs), are regarded as propellers of job creation, technological advancement, and economic growth. In Pakistan, 99% percent of all enterprises are SMEs’ employing more than 70% of non-agriculture labor. Surgical instruments manufacturing industry of Sialkot comprising SMEs contributes sizably to Gross Domestic Product (GDP) and exports. Recent studies has highlighted lack of financing options for SMEs’ and the necessity to determine the responsible factors. Here we report disparities and liable underlying variables in SMEs’ financing especially for surgical instruments cluster located at Sialkot, Pakistan. Results of pilot study discussed with a focus group comprised of 5 firms. Improved questionnaire were administered among 197 firms selected through convenience sampling technique, of which 100 firms responded. Purposive sampling is used to conduct in-depth interviews from 20 firms followed by transcription, content analysis, and themes identification. Data analysis includes reports drawn from NVivo on the basis of word frequency, numbers of paragraph coded and reveals profound statistical relationship among variables. Chi-square test confirms disparities in SMEs’ finance by financial institutions due to non-availability of accounting & financial record; cumbersome procedures; high interest rates, lack of entrepreneurial skills to prepare business plans; and regulatory issues related to the Government.