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Using Online Banking Solutions for Bulgarian Businesses: Pros and Cons
In today’s digital-first world, many companies are turning to online banking solutions to streamline financial operations. But are these platforms suitable for your Bulgarian business? Let’s explore the benefits, risks, and practical advice to help you decide. In this article you are going to learn more about online banking for Bulgarian businesses, stay with us!
What Are Online Banking Solutions?
Online banking platforms such as Revolut Business, Wise, Paysera, and iCard provide fully digital business accounts. These platforms allow Bulgarian and international entrepreneurs to open and manage business accounts remotely, often without stepping into a bank branch. This makes them highly attractive to remote-first companies, freelancers, and digital nomads operating in Bulgaria.
Pros of Using Online Banking for Bulgarian Companies
- Easy Account Opening
- Fast, paperless, and 100% online onboarding
- Ideal for non-residents and foreign company owners
- Lower Fees
- Competitive exchange rates for currency conversion
- Minimal or zero fees on international transfers
- No monthly account maintenance costs (in some cases)
- Multi-Currency Support
- Hold and transact in EUR, USD, GBP, and others
- Useful for companies with clients abroad
- Business Integrations
- Connects with tools like QuickBooks, Xero, Stripe
- Offers API access for automation and custom solutions
- Mobile-First Experience
- Real-time notifications and account updates
- Full control from your mobile device
Cons and Limitations
- Not Fully Regulated as Bulgarian Banks
- Most are licensed as e-money institutions, not banks
- This can limit their use for official documentation
- No Cash Handling
- Cannot deposit or withdraw cash
- Not suitable for retail or cash-based businesses
- Foreign IBANs
- Accounts may have IBANs from Lithuania, Belgium, or the UK
- May create challenges with Bulgarian authorities or payroll
- Limited Government Compatibility
- Some institutions like the NRA may not accept foreign IBANs
- Potential issues with tax and social security payments
- Missing Financial Services
- No credit lines, overdrafts, or business loans
- No POS terminals or bank guarantees
Comparison Table: Online Banking vs Traditional Bank
| Feature | Online Bank | Traditional Bank (Bulgaria) |
|---|---|---|
| Account Opening | Online, fast, no physical visit | Requires physical presence and paperwork |
| Cash Handling | Not available | Full access (deposit/withdraw) |
| Multi-currency Support | Yes | Limited |
| Integration & Automation | Advanced (API, accounting tools) | Basic or none |
| Accepted by Government | Limited | Fully accepted |
Best Use Cases for Online Banking
Online banking platforms are an excellent option for businesses that work primarily in international environments. These include:
- Freelancers and IT consultants
- E-commerce stores selling abroad
- Startups with remote teams
- Digital marketing or creative agencies
Conclusion and Practical Tip
Online banking platforms are convenient, cost-effective, and built for flexibility. They are not a one-size-fits-all solution but can significantly improve your operations – especially if you handle international clients and currencies.
Practical Tip: If you own a Bulgarian EOOD, consider using Revolut Business or Wise for managing foreign currency payments. At the same time, maintain a traditional BGN account with a local Bulgarian bank to cover your payroll, taxes, and work with government institutions without delays or rejections.
Want help choosing the right banking mix for your business?
Contact ASB Accounting Services Bulgaria for a consultation. We’ll guide you through setting up the ideal financial infrastructure based on your needs.