More and more Canadians are beginning to work as independent contractors.
Some are forced to, due to lack of job security in certain industries. Others are choosing to do so to have more flexible hours and gain varied experience. There are also some who opt to freelance in their spare time to make more money on the side.
Regardless of why any Canadian is freelancing, one issue they all face is the stress of receiving payments from employers. This is especially true for the ones whose employers are based overseas, such as in the neighbouring United States.
Here we take a look at various methods of payments companies us to pay their Canadian freelancers, and outline which method is the best option for receiving payments – from anywhere in the world.
Wire Transfer
Despite how outdated it has become, wire transfer is still one of the most popular methods of sending money worldwide. It is especially popular for international transfers.
Once a bank wire transfer has been sent, it usually takes around 3 business days to be processed. However, it is not unusual for a wire transfer to take as long as 5 business days.
In some cases, a wire transfer may take weeks. This is possible when sending money overseas, to a country where the sender’s bank does not have strong banking relationships. The funds travel through one or more intermediary banks, resulting in the entire process being further delayed.
Considering all the above, being paid by wire transfer may not be the best idea. Waiting on your money to become available can cause you great stress. It can result in issues like delayed rent payments or being forced to your overdraft your chequing account.
And to make matters worse, many banks will charge you a receiving fee on incoming wire transfers, somewhere around the $15 mark – but can be much higher. This is super frustrating, as it means you never get exactly what you’re owed. For smaller gigs, letting go of $15-20 for a $500 payment is downright absurd. This means you either shell out the fees, or wait till your payable earnings is a sizeable chunk before you ask for it to be sent across and thereby avoid paying bank fees multiple times.
Cheque
While less common than ever in 2019, there are still many companies out there who pay freelancers by cheque. This can cause a lot of issues.
First of all, there’s always the chance that a cheque can get lost – or stolen – in the mail. You may think that’s unlikely to happen to you, but almost 500,000 letters are lost each year through Canada Post!
Check out our blog: Why You Should Not Mail Cheques
Once you’ve waited for your cheque to arrive, there’s then the added hassle of having to go to your bank to lodge it. Not only can it be inconvenient to visit during banking hours, you may not have instant access to your funds.
Many banks in Canada will put your funds on hold for up to 5 business days once you have lodged a cheque, as they wait for it to be cleared. While a small amount of the funds may be made instantly available, waiting around on your wages can be super frustrating. It can lead to pressing financial issues, such as missed rent and bill payments.
Regardless of whether you get paid by cheque or by wire transfer, the bank would give you 2-3% less than what you should have received, when you convert your earnings into your local currency. For example, if you get paid in USD and you deposit the money in your CAD account, you’d lose 3% on the available exchange rate on the day you convert.
Even if you deposit the money in a USD account in your country, the conversion charges will apply whenever you decide to convert and use the funds in your own currency.
REMITR Collect
For Canadian freelancers, there is no better way of receiving payments – from anywhere in the world – than using REMITR Collect. All you need to do is incorporate yourself as a company and register with REMITR.
Once you register for REMITR Collect, you will receive a free REMITR Global Account. Receiving payments into this Global Account is completely free!
The REMITR Global Account allows you to collect payments in either Euro or US Dollar. You can then withdraw them in CAD to your local bank account. You do not have to worry about selling your USD to get CAD, as REMITR always converts it to CAD at the most optimal Foreign Exchange rates.
Users have the ability to withdraw funds from their Global Account into their local bank account at any time they wish. Funds are transferred to your local bank account within 1 business day of submitting your online withdrawal request.
REMITR is accessible 24/7, thus eliminating the excuse of customers who are using distance and time zones are an acceptable reason to delay your payments.
Sick and tired of paying hefty receiving fees? Of waiting around to access your money? If you’re in need of a payment method you can really trust, get in touch with REMITR today.
