This paper aims to investigate the effects of accessibility to bank branches on the capital structure of small- and medium-sized enterprises (SMEs) by analysing the change in three different leverage measures (total, short-term and long-term leverage). The analysis was conducted using random effects models on two data samples. The full sample consisted of 19,064 SMEs while the other sample used to estimate the long-term leverage consisted of 8707 SMEs over two years, 2007 and 2013. The results show that the distance to the nearest bank branch has a negative relationship with total leverage and short-term leverage but a small positive relationship with long-term leverage. An interesting result from the robustness test shows that the distance to the nearest bank negatively affects the long-term leverage of SMEs in rural areas. SME owners and policymakers may benefit from this research amidst the changing banking landscape; policymakers can help increase access to other types of funding for SMEs in bank deserts by increasing the volume of governmental loans. To the best of the authors’ knowledge, the distance to the nearest bank branch office has not been examined in the earlier literature as a determinant of the leverage of SMEs.