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| Ways to pay international contractors and employees abroad |
A businessman has to pay his staff and contractors on time. The staff and contractors can be from different countries, so they should also be paid on time like the employees and contractors of the same nation. A businessman should not make its international employees and contractors wait for timely payment. There are some ways to pay money to make international trade transactions with employees and contractors abroad. Check out these five ways to pay international contractors and employees abroad.
1. Transfer Wise for International Contractors
Transferwise is a system established to make payments around the world in an accessible and cheap way. In addition to the International fund transfer on the real exchange rates, the Transfer Wise even offers you the border less account which lets you store money in various currencies. With the help of TransferWise, you can get your virtual account details for receiving the money in the EU, the US, Australia, and the UK. This payment method does not charge any monthly fee so that you can sign up for free.
The Pros of paying through TransferWise:
- High limits
- Low cost
- Convenience
- Online
- Notification of receipt
- Bulk payment options
- Great exchange rates
- Secure
The cons of paying through TransferWise
- One-time verification process
- Local bank details
- No cash pickups
- No recipient mediation
2. International Wire Transfer for Overseas Employees
This method is the best one to make International fund transfer to employees. It generally works with the SWIFT network, which is costly and complicated and links the international Business Banking Services together. The money transfers through many intermediary banks which deduct their charges for trouble.
The pros of paying through international wire
- Use of your bank
- Security
- High limits
- Fixed upfront fees
- Directly paying to recipient’s bank account
The cons of paying through international wire
- Fixed upfront fees
- Intermediaries fees
- Exchange rate
- Speed
- Inconvenience
3. International Money Order for International Contractors Abroad
An international money order is an another solution for making international fund transfer to employees and contractors abroad. A businessman can buy it at the range of different locations by paying the amount which you want to send to your employees and contractors overseas. After that, you have to send a money order to the recipient by post.
The pros of paying through international money order
- No need for bank account
- Guaranteed way
- Common method
- The necessity of recipient identity
The cons of paying through international money order
- Inflexibility
- Scams are common
- Speed
- Limits
- Hard to cash
- Fees
- Cost of Exchange rates
4. PayPal for International Employees
You would have heard about PayPal. It is the most famous online Business Finance Solutions. This method keeps an eye on the cost of international trade transactions. It does so because the costs involved are not so clear upfront. According to independent research, business international fund transfers can be eight times easy with PayPal.
The pros of paying through PayPal
- Convenience
- Speed
- Special business offerings
- No need of recipient’s bank details
The cons of paying through PayPal
- Unclear fees
- Exchange rates
- Business account fees
- Recipient fees
- Recipient account needed
5. Xoom for Overseas Contractors
PayPal has owned Xoom but even then offers different services to business people and individuals to send money or business funds out of the US. The transactions are processed very quickly through Xoom. All the banks registered under Xoom are well reputed.
The pros of paying through Xoom
- Speed
- Ease of use
- Several delivery options
- Send up to $10,000 in one time
The cons of paying through Xoom
- Fees
- Exchange rate
- Limits
Conclusion
Although there are some more options for making Business Finance Solutions, yet these five are common options used by businesses. A businessperson should be happy about which option he is choosing for making payments and getting what you and your contractors and employees deserve from the Business finance services.
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