This paper is motivated by a lack of systematically documented literature on the financing constraints of micro and small enterprises (MSEs) in Fiji, a small island developing state in the South Pacific region. Recognising that financing constraints may impede the MSE-SME transition, resulting in a relatively small SME sector and thereby restricted economic activity, the study investigates the reasons for financing constraints of MSEs in Fiji, with a focus on bank credit. Findings reveal that that the MSE-SME transition may particularly be constrained by banks' interest rates, fees and charges, and collateral. Implications for economic growth are considerable.