Due to lack of internal and own sources in small and medium-sized enterprises (SMEs), the debt financing is an inevitable part of a total amount of capital used in business. The aim of this paper is to find out what knowledge of debt financing (e.g., in the sense of its costs and risk) the SMEs entrepreneurs have. We also tried to reveal the differences regarding such knowledge in relation to age and education of the entrepreneurs and the length of doing their business. The data was collected through the questionnaire survey undertaken on the sample of 352 SMEs entrepreneurs in the Czech Republic. Our results revealed that 83% of entrepreneurs understand the most important aspects of credit risk and 73% of them think that an entrepreneur needs to use a certain amount of loans. There were found statistically significant differences in this statement between male and female entrepreneurs.