This book was aimed at assessing and identifying the challenges that Development Bank of Ethiopia faces in Small and Medium Enterprise lease financing. The factor of commencement of the study is the fact that the Small and Medium Enterprises play a vital role in development of our country and at the same time Small and Medium Enterprise lease financing is the new and infant mode of financing in the country as well as in the specific company which is Development Bank of Ethiopia. Due to this fact the bank was perceived to face challenges in financing Small and Medium Enterprises through lease. The population of the study was Development Bank of Ethiopia and Purposive sampling design has been used. Since Development Bank of Ethiopia is the only bank which implements Small and Medium Enterprise lease financing program the supply side population was Development Bank of Ethiopia itself and the Small and Medium Enterprise Lease financing directorate of the bank have been identified as target sample based on purposive sample design. Questionnaire, key informant interview and document review were used as data collection instrument.