Abstract: In Kenya most businesses do not have enough internal finances to re-invest in their businesses and therefore they seek external finances which they obtain from various sources and it is not clear which source of finance contribute most to their improved performance and hence this study. Purposely this study was to determine the effect of sources of finance on the performance of wholesale and retail businesses in Kenya. The specific objective was; to identify the effect of trade credit on performance of wholesale and retail businesses in Kenya. The population of the study was all the 1.56 Million businesses in Kenya.