Always, the problem of liquidity shortage recognized as an impeding factor for economic development in Iran’s economy. In most of the monitoring reports of business environment, the lack of access to the finance and high rate of borrowed resources is the top problem for firms. On the one hand, the firms demand to facilitate access to bank loan finance and lower interest cost. On the other hand, the evidence of past decades implies that this policy is a temporary remedy and can’t settle the problem of liquidity shortage for firms. This subject has been one of the most important challenges in Iran’s economic policy-making area. This research seeks to recognize the main causes of the tough financial situation in Iran’ economy. The most important causes of the tough financial situation from supply side of the credit market include the low share of non-government sector debt in the total asset of the banking system, the high non-performing loan ratio, the concentrated and disproportionate allocation of loans. In addition, the crucial causes of the tough financial situation from the demand side of the credit market are the dependence of capital structure on external funds and the firm’s high need for the working capital loan