The study aimed at determining the effect of collateral on SME Performance in Buloba town. The research sample size was 80 SMEs based in Buloba town. The study adopted a survey research design; it included using of self-administered questionnaires which were structured in nature. The results revealed that collateral as an element of Credit accessibility was assessed by the respondents as fairly satisfactory (average mean = 3.351, Std = 1.3038). It was noted that (mean = 3.78, Std = 1.352), was satisfactory according to the Likert scale and this showed that collateral enabled SMEs to easily access finances (credit) since financial institutions
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