Business Funding
Sources of Financing
In Georgia, the main sources of business financing include commercial banks, state support programs, microfinance institutions, international financial institutions, grant programs, and private investors. The choice of financing source depends on the nature of the business activity, its stage of development, and its financial needs.
Bank financing is one of the most common forms of business development funding. Commercial banks offer entrepreneurs various financial products, including business loans, credit lines, overdrafts, and leasing services.
Commercial Banks
State support programs include “Enterprise Georgia,” programs of the Rural Development Agency (RDA), programs of the Georgian Innovation and Technology Agency (GITA), and other initiatives that offer businesses financing, co-financing, guarantee schemes, and development opportunities.
Government Support Programs
Microfinance institutions offer entrepreneurs business, investment, and agricultural loans, as well as other credit products that support the financing of day-to-day operations and business development.
Microfinance Institutions
International Financial Institutions
International Finance Organization such as the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), the Asian Development Bank (ADB), the European Investment Bank (EIB), and the World Bank Group, support business development in Georgia through various credit, guarantee, and technical assistance programs.
Grants are provided by government, international, and donor organizations. In Georgia, important sources of grants include the European Union (EU), USAID, the United Nations Development Programme (UNDP), the Food and Agriculture Organization of the United Nations (FAO), and other international organizations that fund the development of business, agriculture, innovation, and social projects in various sectors.
Grants
Important Factors for Obtaining Financing
Access to financing requires proper financial accounting, well-organised legal and financial documentation, timely fulfilment of tax obligations, and a clear business development plan.
Funding providers typically assess a business’s financial condition, creditworthiness, operating history, and the feasibility of the proposed project.