Entrepreneurs and startups that rely on freelancers know that maintaining their relationship with their vendors is an ongoing task. While perks and kind words go a long way, the most important thing for freelancers is getting paid on time, in full, and in their desired currency.
That is why companies need to invest in finding a cost-efficient payment solution that helps them ensure best business payment practices are met every time.
ALIGN PAYMENT EXPECTATIONS
To ensure that best practices are met when making business payments, it is important for companies to align business payment expectations with their external suppliers.
In some countries, payment terms are by the end of the month, in others 30 days, and some net + 14, 30 etc. Some contractors expect payment to include the transfer costs and other freelancers expect to receive payment based on a certain exchange rate.
Failure to align payment expectations could cause hardships down the road if a freelancer’s expected payment method is not easily manageable by a company or requires additional forms, man-hours etc.
COMMUNICATE TRANSFER TIMES
Many companies find themselves working with freelancers located throughout the world leading them to perform cross currency payments.
Since these cross currency payments can cause a difference between the billed and received amount for freelancers, it is important to clarify how exchange rates are treated with freelancers. Many freelancers invoice in their local currency and expect the exact amount they invoice for, and many companies will pay freelancers in their currency and let the bank exchange the funds. The result is a mismatch between the amounts due to currency fluctuations.
That is why companies looking to work with freelancers need to find a payment solution that ensures the freelancers receive the full payment amount in the currency they requested and that all cross-currency exchange fees are factored in.
Today, companies do not need to rely on banks and snail mail to pay international freelancers; these methods are time consuming, costly and can lead to too much error and dissatisfaction on both parties.
That is why global payment solutions such as Payoneer offer businesses a simple platform to manage international payments to freelancers and suppliers. Using Payoneer, companies can make international payments as though local based, reducing the chance of misalignment on payment terms, currency rates, transfer times etc.
By ensuring that payments are always made on time and that freelancers are always satisfied with the working relationship, companies are setting the foundation for long term business relationships.