Remote work and geographically scattered teams are critical business imperatives in the post-COVID gig economy. One of the best things about a remote team, apart from business continuity, is that you can recruit the best and most professional people at a lower rate, regardless of their venue. It’s important to pay your international team of staff, contractors, and freelancers well and on time if you want them to stick with you for the long haul and contribute to your success story.
In this short article, we’ll go through four different ways to honor foreign payments, as well as the benefits and drawbacks of each. If you work with freelancers and staff from other countries,
this is the article for you.
Why is it so important to pay the international team on time?
Money is the lubricant that keeps business relationships strong and going for the long haul. One of the most important reasons to pay the international team on time is because of this. Another benefit of prompt payments is that it encourages your workers to go above and beyond for you.
You can stop interest rates on late payments and uphold a reputation for fairness and integrity by paying them on time. Failure to make timely payments, on the other hand, can strain your relationships, harm your financial situation, and harm your market reputation.
Important Considerations When Selecting a Payment Method
Here are five important considerations to make before deciding on a payment method:
- Sponsored countries
Which countries does the payment service support? It’s pointless to choose this provider if the team members live in countries that the provider doesn’t serve.
- Accepted currencies
You may also choose the provider if the employees can adopt a popular currency on the provider’s list (e.g. USD) but not their home currency (e.g. MYR). If not, go somewhere else.
What are the fees for foreign payments and transactions with the provider? Is there a tax for transfers and currency conversion? For same-day transfers, is there a “fast send premium”?
Is there anything else I should be mindful of in terms of fees or charges? Before you sign up, make sure you’re aware of these potential costs.
- The pace at which payments are made
Different payment systems have different payment rates. What are the speeds that you and your recipients prefer?
- Capacity to provide business services
If your company transacts internationally regularly, you’ll need ongoing support and business features like bulk sends and multi-level security.
4 Ways to Pay Your International Staffs & Freelancers
#1. International bank transactions are number one.
Advantages: Safe and dependable
Cons: Slow, costly, and obfuscated
The international business payments world is still dominated by banks. A foreign wire transfer is, without a doubt, one of the best ways to make business payments. It is, however, sluggish. Depending on the sending and receiving countries and banks, payments in major currencies take 2-5 business days, depending on the sending and receiving countries and banks, as well as the size of the payment. It may take much longer for more “exotic” currencies.
Bank transfers between countries are often costly. Banks always take a margin of more than 5% and apply a transaction fee to each transaction. The bank applies a “margin” of 0.07 percent -7 percent above the mid-market rate after measuring the mid-market rate.
is a service that allows you to
Pros: Easy to use, well-known, and free account development
Fees are high, transfer speeds are slow, and there are sending restrictions.
PayPal is a common choice for many companies around the world because it was one of the first to provide digital money transfers and payments. It’s easy to set up and operate.
#3. Credit Card for Business
Pros: Effective at controlling cash flow and rewarding employees.
Cons: Fees vary, and exchange rates fluctuate.
You can pay staff and freelancers without paying interest for a fixed number of days by turning unused corporate credit card limits into cash flows. Some cards also give you points for any transaction you make.
#4. International payments account
Pros: Fast transfers, low cost, transparent processes
Companies with international workers and freelancers now have a variety of options for managing their multinational payments on a low-cost and convenient basis. Each approach has advantages and disadvantages, but if you want a truly inexpensive, simple, and convenient cross-border solution, consider the payment method.