Freelancers and on-demand contractors are on the rise as there has been a shift from the security of a 9 to 5 jobs; for the flexibility of being your own boss. However, with freelancing and independent contracting comes potential barriers. According to a study, conducted by Expert360, 11.6% of full-time permanent employees going freelance are concerned over payment processes.
One of the perks of freelancing is the ability to breakdown global barriers and find work opportunities all over the world. However, with global work opportunities comes payments in global currencies. Freelancers should look for fast, safe and cheap payment options to collect their foreign payments.
Invoice foreign customer in local currency with World Account
The World Account is a multi-currency receiving account that gives your business free access to local bank account details in 10 currencies. These include details like routing numbers and swift codes for USD, GBP, EUR, CAD, AUD, NZD, HKD, SGD, CNH and JPY.
Having the above currencies will allow you to receive payments like a local and carry out global business seamlessly. World Account has no account maintenance fees & no annual transfer limits with the ability to make same-currency payments direct from World Account.
WorldFirst offers simple, tiered transparent pricing of 0.60% or less. This will be reciprocated across all currency conversion using World Account, so you are informed and aware of the pricing for all conversions that occur on the World Account.
This is beneficial, not only for freelancers but the following industries & professions collecting overseas funds:
- Start-ups & venture capitalist
- Travel & Tourism Industries
- E-commerce and online sellers
- Marketing Businesses
- Software & IT Businesses
With the recent integration with Xero, customers of the World Account are now able to get real-time feeds of transactions into Xero. This will allow you to send invoices to global clients while reconciling your payments.
PayPal is common amongst freelancers and independent contractors to make and withdraw payments. However, is it the perfect solution for your business? This will depend on your business needs.
Its ability to integrate to multiple sites is a key feature as well as sending professional invoices through PayPal, to quicken the process, however a thing to consider is the additional 2.6% fee + $0.30 paid from Australian customers.
Although, PayPal offers a simple payments process, their currency conversion fees when you convert to your local bank account should be analyzed. According to PayPal’s site this is a spread of 3% above PayPal’s base rate. Although, there are pros and cons for PayPal, it is best to see what suits your business needs best before deciding.
Traditional banks are still commonly used for receiving and making payments for businesses. Businesses often still place their bank details to receive payments on invoices.
However, one of the major setbacks when conducting international business as a freelancer is your bank may charge an exchange rate margin on average of 5.00%, this is on top of a high fixed fee that is often charged alongside this. Make sure you check with your bank beforehand when making any international money transfers on any additional fees.
Save on your international payments
Freelance work is becoming more and more competitive as we see the growth in job placements using marketplaces. Consider all your payment options for your business and don’t be afraid to work with more than one provider, saving on foreign exchange can add much needed bite to your bottom line.
*Rates are taken from an independent third party comparison site.
These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement.
Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed.
All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice.
Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits.