This paper presents an analysis of sources of finance used by Colombian SMES, and the relationship between these sources and financial management indicators, in order to identify possible causes for the difficulties that SMES face. The research conducted was quantitative, explanatory, non-experimental, longitudinal, exploratory and correlational. The population consisted of 4168 Colombian SMES that submitted financial statements to the Superintendencia de Sociedades between 2004 and 2009. The results show that SMES obtain finance mainly through their own funds, to a lesser extent through short-term liabilities, and in a low proportion of cases through long-term liabilities. This follows a similar pattern to that explained by pecking order theory. Likewise, statistics suggest that SMES face major limitations to generating income and attracting finance that could improve their performance. Indicators of liquidity, efficiency and profitability show that conditions in the sector are unfavorable, making it difficult to obtain new funds. Finally, from the correlational analysis it can be inferred that the most important indicators for obtaining access to external finance are those related to company management.