Blockchain can significantly reduce financing costs for SMEs by streamlining processes and enhancing transparency. It eliminates intermediaries in transactions, cutting fees associated with traditional banking and lending platforms. Smart contracts automate loan agreements, reducing administrative costs and delays. Blockchain-based crowdfunding and tokenization enable direct access to global investors, bypassing costly financial institutions. Additionally, decentralized ledgers improve credit assessment by providing secure, verifiable data, potentially lowering interest rates for SMEs with limited credit history. However, adoption challenges like technical complexity and regulatory uncertainty may offset some benefits. Overall, blockchain offers a cost-effective financing alternative for SMEs.