This descriptive study examined the financial challenges and coping strategies of 100 small and medium enterprises (SMEs) in Sara, Iloilo, utilizing a researcher-modified questionnaire analyzed through means, standard deviation, and Pearson's correlation. The findings indicated that budgeting, operating costs, and seasonal variations led to challenges such as over-ordering stocks, cash generation issues, and inadequate access to funding solutions. While coping strategies often included securing loans through collateral, selecting appropriate lending companies, and leveraging promotions, there was no significant relationship found between budgeting challenges and loan/promotion strategies, but a notable link was found between capital challenges and promotional strategies.