Challenges faced by contractors in overseas payments: slow payments, high fees, poor exchange rates.
When it comes to overseas payments, contractors and freelancers face numerous challenges that impact their cash flow and earnings. Slow payments, expensive fees, and unfavorable exchange rates can significantly hinder their financial stability.
Popular payment methods like PayPal, Payoneer, Wise, WesternUnion, and WIRE transfers are commonly used by contractors for international transactions but high transaction fees, lengthy processing times, and poor exchange rates eat into freelancer’s hard-earned income.
For example, a freelancer in South Africa has to wait around 21 days to receive money for their work. This lengthy wait time often creates cash flow issues for freelancers in between pay days. Not just that, the lengthy wait time is due to passing through multiple payment gateways, as the money first has to be cleared from a freelancing platform like Upwork, then Paypal and finally FNB bank. Each platform takes a fee and reduces the freelancer’s earnings. To see our South Africa case study click here.
The problem with traditional payment methods are the high and sometimes hidden fees that contractors may not be aware of. These include withdrawal charges, currency conversion fees, and intermediary charges imposed by banks or payment processors. Fluctuating exchange rates further impact the final amount received by contractors.
Archway Finance simplifies the payment process for overseas contractors by offering lower fees with a 2% flat fee, faster processing times within 24 hours, and more favorable conditions to send or receive money from anywhere in the world. By using Archway Finance, contractors can save money and time while opening up the possibilities to participate in the global marketplace.
In conclusion, the hidden costs of overseas payments can have a profound impact on contractors' cash flow and earnings. However, by embracing a better solution like Archway Finance, contractors can overcome these challenges and save both money and time. It's time for contractors to take control of their payments and explore the benefits of Archway Finance's services.
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