This actually inspired me to create a more structured system with the instant Paypal transfer. Here are few things:

1. The fees, I understand fees are one of the many considerations for the service. And I have really made it as affordable as possible. Currently, the Service fee structure is:

2. Remittance Agency Options – There are a number of options you can see on the Paypal Remittance Form currently, we have LBC, MLhuillier, Cebuana Lhuillier, Western Union, as well as banks that include, Unionbank, BDO, and BPI. Based on the previous transfers that I have made with clients, the top three on my list include:

BPI & Unionbank – The good thing with these two banks is the fact that they don’t charge you for any fee for inter-branch deposits.

BDO – Interbranch deposit fee is at Php 125.00 (if i remember it correctly)

LBC, MLhuillier & Cebuana – remittance fee is dependent on the amount of money to transfer.

Western Union – Unfortunately, I do not recommend this option as the fees are very expensive. Take for example a Php5000 remittance. This would only cost 220-240 using ML or Cebuana, but Western Union eats up Php410.

3. Turnaround Time – I strive to make the transfer as quick as possible. They can range from an hour or 2 for Cebuana or MLhuillier or a quick 30 minute with BPI since it’s just a stone’s throw away. There are also other factors to consider as I also work, so there may be times when it will take a little longer (around 3-4 hours) before I can make the transfer.

Now for the example:

But what if you are in dire need of cash and all you have is your Paypal credit that still needs to be withdrawn to your local bank? Actually, this is what happened to me. So what I did, I scoured Google kingdom for some site that can offer instant remittance using Paypal.

I first checked Xoom.com since I already have an existing account with them. Unfortunately, to my dismay, Xoom no longer offers remittance payment using Paypal.
I also read about GCash and hurriedly went to their website, and again, I ended up frustrated at the fact that you have to have a US funded Paypal account.
But well, if you really need it, you’ll surely get another option, so I went on to check if it is possible to use Western Union. But then again, it’s not supported. Instant remittance using my Paypal credit is just impossible. I will really have to exercise more patience.

Have you had this same predicament? You won’t anymore, here’s what I have come up. To help resolve this issue for other Filipinos or even nationalities who can’t get hold of their Paypal funds instantly.
I am going to offer a third party service where I would act as your middle man to ensure that you get your funds quicker and instant. Here’s how it works.

Let’s say you have $200 in your Paypal account and you want to receive it immediately. Just fill out our form, transfer the money to my Paypal account, pay a small fee plus the remittance fee for either Western Union or MLhuillier or whatever local remittance service is convenient for you and I will send you your money instantly. No waiting, no hassle.

As a reference, here are the current charge rates if you would like to receive your money through Western Union, Cebuana Lhuillier or MLhuillier, please check the remittance charge matrix below.

Cebuana Lhuillier Rates

If you are that frustrated and unprepared, you might just end up doing both, but here’s some suggestions to ward off this kind of situation to save both your business and your reputation.

Pay on Time

If you are the type of person who is inclined to procrastinate, you have a higher possibility of getting more frustrated and bogged by late payment scenarios. It’s funny but it’s true! Before you demand your clients from paying on time, you may want to check if you are actually paying on time yourself! Fix your payments too! Pay on time! You simply can’t pass the blame to your clients’ delayed payment for your unpaid bill. Sometimes we are tempted to delay payment ourselves. LaToya Irby has outlined pretty clearly the advantages of paying on time in her article 7 Reasons to Make Your Credit Card Payment on Time.

Budget

The talk gets really boring to many when the discussion turns to budgeting. No wonder there are only a few who can withstand a financial crisis and still live like a king because only a few really knows budgeting and why it’s important! But budgeting has its hidden treasures that only those who stick to it can actually discover. It’s not how many clients or how big your salary that matters, but it’s how you handle what you have. If you don’t know how to budget, then it’s time to learn. There are many budgeting software available that can get you started. Mint, Buxfer and Quicken are just a few of them but even your ordinary excel or word can actually help you create a functional budget.

Save

Saving is perhaps is one of the most overused and neglected terms that people only recall when they are in “dire need”. But when everything is working smoothly, nobody cares to at least get a piggy bank and drop a few coins for future or emergency use. You should know by now that as freelancer, your line of work and the financial aspect of being a freelancer has an equal uncertainty that goes with it. You simply can’t rely on your projects to last and so is the cash flow. There is myriad of reasons to save and if you have time you may check this article from About.com that provides the Top Seven Reasons to Save

Reminder

Paypal is by far one of the most convenient way of invoicing and receiving payment. And one good thing you’ll like with Paypal is it’s ability track if your payments have been completed. Otherwise, you can just send out a reminder. I’ve had a few experience where a client had to get back to me and ask for the bill 2 weeks after I’ve actually sent out the invoice. And guess what, email piled up so fast that he was not able to read it. So don’t be afraid to send out reminders. This way, you will be able to ensure that your client’s are well advised. Don’t assume things, be certain.

If you are using third party tools for your invoicing and payment tracking like SimplyBill or Freshbooks take advantage of its reminder feature.

Payment Guideline

Setting the right expectation when it comes to payment is essential in establishing a harmonious client-provider relationship. Before you start work, make sure that all gray areas are clarified most specially when it comes to payment and payment conditions. Set the proper expectation when it comes to invoicing your customers and when you expect them to complete the payment. If you think that a 2day wait of Paypal withdrawal to your bank account is too long then provide alternatives, like LMS Remittance (UK), MLhuillier, Xoom, or Western Union money transfer.

Bottom Line

Late payment scenario is avoidable and trivial if you are prepared. Understand that emergencies always come every now and then and unforeseen circumstances can happen that even the most prompt client can’t anticipate. If your client is delayed in payment, try to understand his/her case. Ensure that your terms and payment options are convenient for the situation. Otherwise, be prudent and wise to prepare yourself when your client fails. It doesn’t have to be a cause of a strained relationship, but if you can agree on this area, then you’re increasing your chances of building a lasting partnership.

So I’m changing that style. As they say, if you can’t beat them, join them. Go ahead, BUY BUY BUY! But before you indulge read through the shopping list I’ve prepared for you. Then go ahead and enjoy your shopping spree!

Computer and Equipments
I know you are itching to get the latest version of Mac as much as I do. If you can afford it, go for it! As an online worker who spends 40 hours or more in front of the computer, it is imperative that you invest in a machine that will give you the security and reliability in delivering your work. Whether it’s a Mac or a PC, what’s important is that it’s up to the task.

I’d also recommend that you get an uninterrupted power supply (UPS), external hard disk, extra battery pack for your laptop and a comfy office furniture that will make you work comfortably.

A Book or Special Training Course
Get a good book to read or a training course to enroll that will enhance your current skill set. I highly recommend The Wealthy Freelancer by Ed Gandia et al. It’s power pack with great ideas that’s relevant to our time and realistic. The 12 secrets that they have outlined will make give you a different perspective at freelancing and will open up your eyes that this is serious business!

There are many other books available out there and it’s always to your advantage if you keep yourself abreast with the latest technologies, ideas and innovations. You simply can’t afford to be left behind in this rapidly changing world. If you are having a second thought on investing on a short course, try ignorance. You’ll lose more clients from not knowing something that you could have provided if you keep on learning!

Domain and Hosting
If you don’t have a website or blog yet, it’s about time for you to take your freelance business on the web. Get a website. “A carpenter doesn’t have a house” won’t be applicable in this era. You need to get your name out, and tell the world what you can offer. Build a brand of your own and start leveraging the power of social media in getting more clients.

This is probably the cheapest item on your shopping list but the promise of return is enormous! So don’t just take it for granted. Get the domain name for your business, sign up for a reliable hosting provider. My current hosting is with www.GoDaddy.com and they are doing a great job, plus great discounts for domain and hosting. For the web design part, try www.99designs.com to get some help if you can’t do it yourself.

I know a whole day won’t be enough to get all of these and set up completely. It will keep you busy for a little while and ward off another attack of impulsive buying.

Bottomline: It’s not a sin to spend on something you really want to have as long as you can afford it. And there is a better word that we ought to learn about money that’s more powerful than spending, and that is INVESTING.

Now it’s your turn. The comment is open so get me another item on the shopping list for our shopaholic freelancer that is a worthwhile investment!

Image credit: www.thewealthyfreelancer.com

Aside from the normal exchange rate fluctuations, you should also remember that withdrawing your funds from Paypal to your local banks will give you a much lower rate. As an example, I’ve graphed my withdrawals for the month of June from Paypal to my EON card. I then compared the rate at www.exchange-rates.org. From the 10 withdrawals that I’ve made, there was an average difference of Php1.1914 between the EON exchange rate and exchange-rates.org (see table 1)  It’s not a huge loss in the short term, but if this amount accumulates over a period of time, you’ll definitely feel that little things do matter.

Table 1: Comparison of Exchange rates between Paypal to EON vs. Market rate at exchange-rates.org

In span of 10 withdrawals that I have made for the period of June (see table 2), the highest level reached was at Php45.48 to a dollar, while it took a dip on the 23rd at Php44.58 to a dollar exchange rate.

Table 2: June Average Exchange Rate (From Paypal to EON)

Although the month June showed a dip during the last week of the month, it still posted the highest exchange rates during the 1st half of 2010.  The dry month of April also proved to be the lowest point for the dollar earning Filipinos. On the other hand, January and February exchange rates are the months where the exchange rates have been most stable.

Table 3: First Half of 2010 Average Exchange Rates