You’re working hard to build your business, you’re hiring talent from around the world, and you’re meeting the needs of your clients. Everything is going great, but then the end of the month comes around again, and your invoicing feels like a real headache.
Sound familiar? The good news is that you’re in exactly the right spot when you want to be able to make quick work of a time-consuming task while also sidestepping the costly fees charged by freelancer platforms.
How to Pay Freelancers Overseas?
Look Beyond Your Local Bank
If every freelancer you’re hiring for work is based in the same country as you, a domestic bank transfer may well be all you need to take care of the invoicing side of things.
Given that there is a whole world of talent out there, why would you limit yourself to just a fraction of the talent pool?
Your local bank is great at what it does, but that doesn’t mean it will be great for everything you want to use it for.
International transfers require exchange rates to be factored in, intermediary banks to be navigated, and for complex sets of documentation to be handled.
Local banks tend to be slow and expensive when you ask them to handle these types of tasks.
Find a Money Transfer Specialist
If you want to be able to pay invoices without having to worry about currency conversion issues and location issues, a money transfer specialist is priceless.
They will be able to make sure that you can securely enter your payment details (debit card, credit card, etc.) and then send the money exactly where it needs to go.
They will also provide real-time tracking so that you can update new freelancers on how long it will take for them to receive their payment.
The key is to find an established service that has a solid reputation online. Looking for online reviews, social profiles, and even video testimonials on sites like YouTube will really help here.
Once you reach out and connect, give yourself time to get a sense for the quality of the customer service you are receiving. If answers and explanations are always forthcoming, this is a good sign.
Streamline the Invoicing Process
The last thing you want to do is build an invoicing process that is so manual and bulky that it causes headaches every time you take on a new freelancer.
Streamlining and automating with pre-populated information and standardised documentation will help lighten the administrative load, allowing you to focus on other elements of your business.
Having standardised processes will help you stay on top of the little details that ensure your business can function.
For example, you could have a document that includes steps such as search SWIFT code details for a new freelancer, requesting the freelancer’s address, and checking the spelling of their surname.
Ticking off these tasks one by one will ensure that you have everything you need in a fraction of the time.
Focus on Compliance Issues
Every country will have its own legal and tax requirements, and it’s your responsibility to stay on top of them.
Some may appear no different than in the UK, while others may ask tax to be dedicated or displayed on invoices in completely different ways.
The point here is not to have a forensic knowledge of every possible requirement, but to be aware that you need to check the requirements every time you onboard a freelancer from a new country.
Being proactive and contacting a money transfer specialist can help you avoid any costly and time-consuming issues that may otherwise arise.
Manage Payment Details Efficiently
Even if you have all of the services and tools you need at your fingertips, you’re the one who will make your business run as it should.
This may feel overwhelming, particularly if your business growth is faster than anticipated, but that doesn’t mean you can’t take back control of the situation with a few smart tips:
- Paying invoices in batches on the same day each week will help add regularity and consistency to your internal processes
- Standardising your onboarding process will ensure that freelancers from new countries never see delays in their payments
- Talk about your international payment setup with a local accountant or solicitor to understand the UK tax implications
- Consider the legal implications of hiring freelancers and staff who are based outside of the UK
- Keep a secure record of the payment details of each freelancer that only you have access to, so that you can make sure nothing is missed
By making sure that you are proactive and take action early, you can stay ahead of the growing demands that your business may place on you. If in doubt, connect with an expert and ask them how they would approach things and how they can help you.
