The economic growth that Bulgaria had been enjoying last year stalled with the onset of the COVID-19 induced recession. Ongoing economic challenges are causing stress for Bulgaria-based businesses.
The results of this year’s Payment Practices Barometer survey paint an interesting picture, with businesses taking proactive steps to promote trade while working to protect themselves from the threat of non-payment of invoices. For example more businesses in the country offered B2B credit after the pandemic than before. Survey respondents told us that this was chiefly to stimulate sales.
In addition to the growth in B2B credit, is a corresponding increase in the use of credit management techniques and tools. These are clearly working to a degree as businesses in Bulgaria reported a much lower percentage of overdue invoices than the regional average. However, a significant proportion of businesses in Bulgaria have been negatively impacted by the pandemic-induced economic crisis.
Key takeaways from the report
- Pandemic recession hits Bulgaria revenue and sales harder than rest of region
- Bulgaria sees big increase in use of trade credit and overdue invoices
- Cash payments still favoured by majority
- Hiring freezes enacted by more businesses in Bulgaria than rest of region
- Bulgaria leads region for amount of businesses worried about 2021 economy
Interested in getting to know more?
For a complete overview of the corporate payment behaviour in Bulgaria during the COVID-19 pandemic and global recession, please download the complete report. The report gives also insight into the impact of the pandemic-induced economic crisis on the following industries in the country:
- Consumer durables