WFY’26: Georgia’s factoring market reaches €235m as digitalisation accelerates

Georgia’s factoring market remains relatively young, but increasing digitalisation, stronger bank participation and growing awareness among SMEs are helping the product develop into a more established source of working capital. In this country report, Tamara Khizanishvili, Head of Trade Finance and Factoring Department at TBC Bank, examines the market’s development against a backdrop of strong economic growth, elevated local-currency borrowing costs and continued demand for alternatives to collateral-based lending.

The article included in the World Factoring Yearbook 2026 (WFY’26) explores a market where estimated factoring turnover reached €235m in 2025 and banks are increasingly moving processes onto automated platforms. It also considers the role of the EBRD, the emergence of instant factoring, Georgia’s developing legal framework and efforts to prevent double financing through shared digital infrastructure.

Below is an excerpt from her article.

In 2025, the factoring market slightly decreased compared to the previous year. The estimated factoring turnover in Georgia reached EUR 235m.

Factoring’s penetration of GDP remains relatively low, with an estimated ratio of 0.70 per cent in 2025, significantly lower than that of European countries. This marks a slight decrease from 2024, when the ratio stood at 0.87 per cent.

The rapid evolution of the industry in 2025 and 2026 is closely linked to the digitalisation of processes that were previously paper-based and manually executed. Historically, establishing a factoring facility required extensive documentation and multiple verification steps, often taking several days to complete. Today, digital platforms and fintech-integrated systems allow banks to manage these processes electronically, enabling faster verification of invoices, automated credit assessments, and improved communication with clients.

The integration of technology into factoring operations brings significant benefits for both financial institutions and businesses. Automated processes reduce administrative burdens, minimise operational risks, and increase transparency in transactions. At the same time, digital platforms allow clients to upload invoices and receive financing much more quickly than in the past. In many cases, banks are now able to offer ‘instant factoring’ solutions, where funding can be transferred to a client’s account within minutes after invoice submission. As a result, technological advancement is playing a crucial role in making factoring more efficient, accessible, and responsive to the needs of modern trade and business activity.

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