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Manufacturer of Georgian Toys: All Commercial Banks Refused to Finance Us

German and Spanish companies have expressed interest in Georgian wooden toys, David Katsitadze, founder of GeoToys Group told Business Morning TV program.

However, the company cannot supply products to European partners, because it lacks for financial resources to expand production.

“We have applied to all commercial banks in Georgia, starting from small ones ending with major ones. Absolutely all of them noted that we were making excellent business, but they could not allocate financial resources. They told we are startup company and at least 6 months are required to finance. There are many barriers.

We told them we needed to buy machineries to fulfill the order by French company with higher output and less expenditures and we needed 150 000 USD credit to this end. The bank gave ridiculous answer, that if our company had turnover of 1 million GEL, they would issue 150 000 USD without problem. If I had a 1 million turnover without profits component, then my business management would be incorrecy… This is a principle of egg and chicken” “If you supply product, we will finance, If you do not supply product, we will not finance”. And how can I supply product without financial resources? How can we make products without buying machineries? We are in similar closed circle”, David Katsitadze said.

GeoToys Group was founded in 2015 and it manufactures wooden toys. The company exports products to France and plans to increase assortment.

“Our products raised much interest at Nuremberg International Exhibition of Toys in January 2018. We use natural material of Georgia beech in production and this material has unique characteristics. Several foreign companies expressed readiness to cooperate with us. Negotiations are continued with them, including Kubi French company. We have already signed a 2-year contract with it and we supply our products to this French company”, David Katsitadze said.