The study aimed at credit financing and the growth of small and medium enterprises in Namungoona trading center and it was guided by the following objectives; To assess the relationship between bank loans and the growth of small and medium enterprises in Namungoona trading center, to examine the relationship between trade credit and the growth of small and medium enterprises in Namungoona trading center and to analyze the relationship between bank overdrafts and the growth of small and medium enterprises in Namungoona trading center. The correlation coefficient (0.669) shows a moderate positive relationship between trade credit and growth of small and medium enterprises in Namungoona trading center. This is statistically significant at 95% confidence interval since the Pvalue (0.35) is less than 0.05 and therefore we reject the null hypothesis and conclude that trade credit had a significant relationship on the growth of small and medium enterprises of Namungoona trading center. Micro Finance institutions should devise means of delivering credit financing facilities and improve terms and conditions under which financial institutions offer various credit facilities to SMEs. The government of the republic of Uganda should partner with other financial institutions to provide subsidized financial/credit assistance to SMEs with little interest rates