Abstract:

On 1 April 2026, Georgia adopted the Law on Factoring, which ensured the systematic legal regulation of factoring contracts and established a unified normative framework. Prior to the adoption of this law, relationships related to factoring were regulated on the basis of various legislative acts, international commercial practice, and doctrinal approaches, which created legal uncertainty and limited the practical application of this legal institution.

Research Objective: This article examines the legal nature of factoring contracts, the model of their new legislative regulation in Georgia, and the main doctrinal issues related to the institution of factoring.

Methodology: The research is based on normative, logical-analytical, inductive-deductive, and comparative legal methods. Within the scope of the study, doctrinal approaches to factoring, its relationship with the assignment of receivables (cession), and practices developed across different legal systems are analyzed.

Results: The analysis of the research findings reveals that factoring combines elements of assignment of receivables (cession), financial services, and lending, which leads to divergent interpretations of its legal nature. Furthermore, the findings demonstrate that factoring goes beyond the scope of classical cession and is evolving in modern financial circulation as an institution with an independent functional role. The results of the study may be applied to the improvement of the legal qualification of factoring, judicial and banking practice, as well as the development of financial supervision standards. In addition, the new legislative model establishes a more stable, transparent, and predictable legal framework for the circulation of receivables and the allocation of financial risks.

Keywords:

legal nature; assignment of receivables (cession); receivable; factoring company; licensing; financial supervision

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