Business Financing
Funding Sources
In Georgia, the main sources of business financing include commercial banks, state support programs, microfinance organizations, international financial institutions, grant programs, and private investors. The choice of financing source depends on the nature of the business, its stage of development, and its financial needs.
Bank financing is one of the most common ways to support business growth. Commercial banks offer entrepreneurs a variety of financial products, including business loans, credit lines, overdraft facilities, and leasing services.
Commercial Banks
Government support programs include initiatives such as Enterprise Georgia, the Rural Development Agency (RDA) programs, the Georgia's Innovation and Technology Agency (GITA) programs, and other initiatives that provide businesses with financing, co-financing, guarantee schemes, and development opportunities.
Government Support Programs
Microfinance organizations offer entrepreneurs business loans, investment loans, agricultural loans, and other credit products designed to support both day-to-day operations and business growth.
Microfinance Organizations
International Financial Institutions (IFIs)
International financial institutions 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 lending, guarantee, and technical assistance programs.
Grants are provided by government institutions, international organizations, and donor agencies. In Georgia, major 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 support the development of businesses, agriculture, innovation, and social projects through various funding programs.
Grants
Key Factors for Obtaining Financing
To obtain financing, it is important for a business to maintain accurate financial records, have well-organized legal and financial documentation, fulfill tax obligations on time, and possess a clear business development plan.
Financing providers typically assess a business’s financial condition, creditworthiness, operating history, and the feasibility of the proposed project before making a financing decision.