Background: The attempt to curb the spread of the pandemic has contributed to negativeeffects on the Swedish economy and is still a major uncertainty for future economicdevelopment. One way to finance the expansion of a growing company is the equity providedby the owner or various venture capital units. Borrowing money is another financingalternative, which the state can issue through loans and grants to a limited extent.

Purpose: The purpose of this study is to investigate how small and medium-sized companieswere affected by external financing difficulties during the corona pandemic. The purpose isfurther to investigate what measures the respective companies have taken to mitigate thenegative consequences of the external financing difficulties that arose during the coronapandemic. The main purpose includes the following questions: "How have companies beenaffected by external financing difficulties during the corona pandemic?" and "What measureshave companies taken to mitigate the negative consequences of the external financingdifficulties?".

Methodology: Qualitative method with an abductive research approach is applied.

Conclusion: The majority of the case companies showed negative consequences of externalfinancing difficulties from the corona pandemic, the measures taken to mitigate the problemwere to maintain a close and good dialogue with the banks where the companies had to showfigures that are not public and future investments.