This year, the Parliament of Georgia adopted the Law on Factoring, which will facilitate the development of an alternative financial instrument in the country and improve access to finance for the business sector. The law will enter into force on January 1, 2027.

Factoring is a transaction whereby the right to a receivable arising from an underlying contract is transferred to the respective factor. The transaction is registered in the relevant factoring registry, and upon registration, ownership of the claim is transferred to the factor.

Under the law, the parties to a factoring transaction are entities regulated by the National Bank of Georgia (NBG) commercial banks, microbanks, microfinance organizations, and factoring companies. Factoring transactions must also be executed through a factoring platform registered in accordance with the requirements established by NBG normative acts.

A factoring platform may be an entity equipped with the appropriate technical infrastructure whose primary business activity is to provide exchange-based services for factoring transactions, including the electronic execution of agreements between the parties to factoring transactions. The platform is intended to facilitate digital interaction among factoring market participants, streamline the financing of accounts receivable, and support the development of innovative financial products.

For the effective implementation of supervisory policy and the development of an appropriate regulatory framework, the National Bank of Georgia considers it important to hear the views and perspectives of stakeholders interested in factoring, including investors, international financial institutions, and NBG-regulated entities. Their input will contribute to the further development of the supervisory framework for factoring platforms.

This will help better identify market needs, support the stable and efficient functioning of the sector, and foster a more transparent, competitive, and development-oriented environment.

In light of the above, we invite you to share your views on the development of the factoring market. Your input will be important in assessing the interests, capabilities, and potential involvement of prospective participants, technology providers, and financial organizations in the sector, and ultimately in establishing an effective factoring ecosystem.

Views and proposals may be submitted by September 4, 2026, to the following email address: InnovationOffice@nbg.gov.ge