CrowdLending (Business) - Georgia

The total transaction value in the Crowdlending (Business) market market in Georgia is projected to reach US$902.00k in 2024.
When compared globally, it is evident that China achieves the highest transaction value at US$16bn in 2024.
In Georgia, CrowdLending platforms are gaining popularity among local businesses seeking alternative capital raising options.

Definition:

Crowdlending platforms, otherwise know as lending-based Crowdfunding enable small and medium-sized enterprises to get loans from single or multiple, private and institutional investors via an online brokering platform. On credit platforms such as Funding Circle, OnDeck, Kabbage and Lending Club, businesses can obtain small loans up to a set maximum value. As a rule, financing requests are analyzed by the provider via an internal scoring system and are checked against additional minimum requirements such as turnover. Subsequently, these financing requests can be invested in by private and institutional investors at an appropriate interest rate determined by the credit rating of the company. This makes it possible for SMEs to borrow quickly and easily, as the basic requirements for obtaining finance are more flexible compared to traditional bank loans.

Alternative financing for SMEs and freelancers (bank-independent loans)
Small business loans issued by single or multiple private and institutional investors (non-banks)
Online loan request, scoring and approval

Traditional bank loans
Consumer loans and credit card transactions
Business-to-Business credit scoring and rating services
Online marketplaces for consumer loans (see Marketplace Lending)

The CrowdLending (Business) market in Georgia is experiencing significant growth and development.

Customer preferences: In recent years, there has been a growing demand for alternative financing options in Georgia. Small and medium-sized businesses, in particular, are increasingly turning to CrowdLending platforms as a source of funding. This is due to the ease and convenience of accessing loans through online platforms, as well as the competitive interest rates and flexible repayment terms offered by CrowdLending providers.

Trends in the market: One of the key trends in the CrowdLending market in Georgia is the emergence of specialized platforms catering specifically to the needs of businesses. These platforms offer tailored loan products and services that are designed to meet the unique requirements of small and medium-sized enterprises (SMEs). This includes features such as higher loan amounts, longer repayment periods, and customized interest rates based on the creditworthiness of the borrower. Another trend in the market is the increasing use of technology and data analytics in the lending process. CrowdLending platforms in Georgia are leveraging advanced algorithms and machine learning techniques to assess the creditworthiness of borrowers and determine the appropriate interest rates. This allows for faster loan approvals and a more streamlined lending process, which is particularly attractive to businesses in need of quick access to funding.

Local special circumstances: Georgia has a vibrant and dynamic business environment, with a high number of startups and SMEs operating in various sectors. However, traditional banks in the country have historically been reluctant to lend to these businesses due to perceived higher risks. This has created a gap in the market, which CrowdLending platforms are now filling by providing much-needed financing options to businesses that may have otherwise struggled to secure funding.

Underlying macroeconomic factors: The development of the CrowdLending market in Georgia can also be attributed to several macroeconomic factors. The country has experienced steady economic growth in recent years, which has led to an increase in business activity and investment opportunities. This has created a demand for financing options, and CrowdLending platforms have stepped in to meet this need. Additionally, the government of Georgia has implemented various initiatives to support the growth of SMEs and promote entrepreneurship. This includes the establishment of favorable regulatory frameworks and the provision of financial incentives for startups and small businesses. These efforts have helped to create a conducive environment for the development of the CrowdLending market in the country. In conclusion, the CrowdLending (Business) market in Georgia is experiencing significant growth and development. Customer preferences for alternative financing options, the emergence of specialized platforms, the use of technology in the lending process, the local business environment, and underlying macroeconomic factors are all contributing to the growth of the market. As the demand for business financing continues to increase, it is expected that the CrowdLending market in Georgia will continue to thrive.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.