This paper has researched the impact of financing forms on the performance of business entities in the Republic of Kosovo. Business entities have an important participation in employment and economic activity in Kosovo. Based on this reason, the analysis of any factor that can positively affect the performance of business entities can offer a positive impact on economic development. In this study, general forms of financing as well as financial institutions in Kosovo were investigated. The study also assesses the challenges faced by business entities in accessing bank loans and other forms of financing. All data have been analyzed for the period 2019, 2020, and 2021 from primary data, which have been collected from the Financial Reports of business entities. The data were processed with econometric methods such as OLS, FE, RE, and the Hausman test. The findings highlight that the forms of financing have a positive impact on increasing performance for business entities in Kosovo. Also, the results highlight the handicap in the forms of financing of business entities, where financial institutions should create more favorable conditions for access to finance of business entities.