Are you a freelancer looking for a reliable and cost-effective way to manage your finances and receive payments from clients across borders? You may have heard of Wise, a popular online money transfer service that claims to offer low fees and competitive exchange rates.
But which Wise account is right for you – personal or business? In this post, I will compare Wise Personal vs Business for freelancers and help you choose the best option for your needs.
Spoiler: A Wise personal account is likely all you’ll need as a freelancer, but if you manage multiple people or deal with large transaction volumes, or want to use Wise for your invoicing, a business account may be more suitable.
Wise Personal Account For Freelancers
A Wise personal account is designed for individuals who need to transfer money internationally on a regular basis, and this can be a good choice for freelancers. With a Wise personal account, you can:
- Send and receive money in more than 50 currencies
- Get a real exchange rate with no hidden fees
- Hold funds in multiple currencies
- Pay bills and make purchases with your Wise debit card
You can open a Wise personal account for free, and there is no monthly fee. However, you will be charged a small fee when you transfer money between currencies, which varies depending on the currency pair and the amount you are transferring. Wise will show you what this fee is and how it compares to other payment options when you are making the transfer.
I’ve talked about Wise being good for freelancers already, and I’ve personally saved hundreds of dollars by using it instead of PayPal. It won’t suit everyone, but if you take a lot of cross-border payments, it can be a much cheaper option compared to other big payment platforms out there.
For freelancers who work with international clients and need to receive payments in different currencies, a Wise Personal account can be a good option. However, if you have a growing business or manage finances for multiple clients, you may want to consider a Wise business account instead.
Wise Business Account For Freelancers
A Wise Business account is designed for small business owners, including freelancers and entrepreneurs. With a Wise business account, you can:
- Manage multiple team members and control their access levels
- Receive payments from customers in more than 70 currencies
- Get a business debit card for online and offline purchases
- View and track your transactions in one place
- Integrate with accounting software like Xero and QuickBooks
While the Wise business account offers many of the same features as the personal account, it also includes extras that can help you save time and streamline your business operations. For example, you can create and send professional invoices, automate recurring payments, and set up batch payments for multiple recipients.
The business account is also free to open (like the personal account), and there are no monthly fees. However, you will be charged a small percentage fee for each transaction, which varies depending on the currency and the amount.
But if you’re a freelancer, should you get a Wise personal account or opt for the more feature-rich business account?
Wise Personal vs Business Accounts For Freelancers
Wise personal and business accounts share several benefits and features that make them both suitable for freelancers. These include:
- Free to open
- No monthly fees
- Fast and secure transfers
- Competitive exchange rates
Wise personal accounts come with everything you need to send and accept cross-border transfers. It is suitable for freelancers who work alone, and do not have to manage payroll or collaborate with team members.
A Wise business account adds in extras that can help you save even more time and money. It is suitable for freelancers who collaborate with a team, manage payroll, and have a higher transaction volume. You can have multiple users on the same account, request payments with invoices, automate your finances with API support, and transfer more money at a time. You can also manage your team’s payroll within Wise.
Should You Use Wise Business Or Personal Account As A Freelancer?
So, if any of these features are a must for your freelancing business, the personal account may not be enough. But if you’re just looking for a cheap and easy way to send and receive money in different currencies, the personal account will be enough.
Can You Change From Wise Personal To Business Account?
You can upgrade your Wise personal account to a business account at any time. Once you upgrade, you’ll have access to the additional features that are only available to business accounts. However, you cannot downgrade your account from business to personal.
Wise is a great platform for freelancers that need to send and receive money in foreign currencies. The personal account will be enough for most freelancers, but if you want additional functionality or have a larger team, the business account is best.