Revolving Credit Facilities in Tbilisi, Georgia

Revolving Credit Facilities

What is a kontokorrent?

An agreement by which claims and payments from business connections enter an account and remain inviolable until closing.

How is closing done?

Once a year, unless otherwise provided; the balance is paid within the agreed term, otherwise it returns to the kontokorrent.

How does security operate?

Satisfaction from personal or in-kind security is possible even after closing, including solidary liability.

May it be cancelled?

Yes — where doubt exists, at any time, with closing of the account.

What is the effect of seizure on the balance?

Debt parts arising after the seizure through new transactions are not counted toward that creditor.

5 min·9 Jan 2026

Revolving Credit Facilities are among the most flexible business financing instruments, allowing companies to borrow and repay funds as needed within a set limit. Unlike a standard term loan where funds are disbursed once, a revolving credit operates on the principle of a credit card but on a much larger scale and for corporate purposes. This is vital for managing a company's working capital, covering cash flow gaps, and ensuring operational continuity. However, such agreements are often burdened with complex conditions, hidden fees, and strict covenants. Legal.ge enables you to find lawyers who will assist you in negotiating with banks and securing the credit line on the best terms.

What does the Revolving Credit Facility service cover?

Legal services in this area include full support at all stages of the credit relationship:

Analysis of the General Credit Agreement: Detailed study of contract terms defining the limit volume, validity period, interest rate type (fixed or floating), and drawdown rules.
Structuring Security: Preparation of mortgage and pledge agreements securing the credit line, including pledges on inventory.
Negotiating Financial Covenants: Legal assessment of restrictions imposed by the bank (e.g., Debt to EBITDA ratio) to ensure the company does not breach them during operations.
Refinancing and Restructuring: Changing the terms of an existing credit line, increasing the limit, or transferring to another bank.
Monitoring Drawdown Conditions: Ensuring all Conditions Precedent are met for receiving each tranche of funds.

Common scenarios and needs

Businesses use revolving credit for various operational needs:

Seasonal Activities: When an agribusiness or tourism company needs funds to purchase inventory before the season starts, while revenue comes in later.
Covering Receivables: When clients delay payments, the company uses the line to cover current expenses (salaries, taxes).
Tenders and Guarantees: When a company needs quick access to financial resources to participate in a tender.
Unforeseen Expenses: Equipment breakdown or unexpected increase in raw material prices.