Hiring international contractors is one of the fastest ways to grow a small business. You get access to global talent, flexible arrangements, and skills that might be hard to find locally. But many small business owners hit the same wall early on: the assumption that paying someone overseas requires opening a business bank account, setting up new financial systems, or wading through compliance paperwork before you can send a single dollar.
That assumption causes real delays. It stops owners from hiring the contractor they’ve already found, and it adds friction to a process that, in many cases, doesn’t need to be that complicated. The good news? For most small businesses and solo founders, it’s entirely possible to start paying international contractors without opening a new business bank account — depending on how you structure your payments.
Here’s what you need to know.
Do You Need a Business Bank Account to Pay Contractors?
The short answer: not always. Legal requirements vary depending on your country, your business structure, and how your local tax authority treats contractor payments. In many cases, especially for early-stage businesses and solo operators, there’s no universal rule that says you must use a dedicated business account to pay contractors.
Many founders start out using a personal or existing account to manage payments. It’s not the ideal long-term setup, but it’s a practical starting point. As your business grows and payment volumes increase, a business account becomes more useful — but it’s rarely the prerequisite people assume it is.
Important note: This post isn’t legal or tax advice. If you’re unsure about your specific obligations, it’s worth speaking to an accountant or financial advisor familiar with your jurisdiction.
Why Small Businesses Hesitate to Open a Business Bank Account
The hesitation is understandable. Opening a business bank account comes with its own list of requirements: identity verification, business registration documents, proof of address, and in some countries, minimum balance requirements or monthly fees.
For an owner-operator who just wants to pay a contractor in Colombia or the Philippines, none of that may feel proportionate to the task. Add to that, the fear of triggering new tax or compliance obligations, and it’s easy to see why many small businesses put it off.
The goal, at this stage, is simple: pay a contractor reliably and move on. Not restructure your entire financial setup.
Traditional Ways to Pay Contractors Without a Business Bank Account
Several options exist, though each comes with trade-offs worth understanding.
Personal Bank Transfers or Wires
Sending money directly from your personal bank account is familiar and accessible. The downside? International bank wires are often expensive, with fees ranging from $15 to $50 per transaction, plus unfavorable exchange rates. Delivery can take three to five business days, and tracking is limited once the money leaves your account.
Cash Apps or Consumer Payment Tools
Apps like Venmo or Cash App are designed for personal use, not business payments. Many don’t support international transfers at all, and those that do often lack the compliance features, payment tracking, or scalability that business payments require. Using consumer tools for contractor payments can also create messy records come tax time.
Asking Contractors to Use Specific Platforms
Some businesses ask contractors to sign up for a particular platform to receive payments. While this can work, it adds friction to onboarding. Not every contractor wants to create a new account just to get paid — and delays in setup mean delays in getting work done.
These approaches can bridge the gap short-term, but they often introduce unnecessary cost, risk, or operational complexity.
| Method | Trade-offs |
| Personal Bank Transfers or Wires | Often expensive (fees $15–$50), unfavorable exchange rates, slow delivery (around 3–5 business days), and limited tracking. |
| Cash Apps or Consumer Payment Tools (e.g., Venmo, Cash App) | Designed for personal use, many lack international support, and they often lack the compliance, tracking, and scalability required for business payments, leading to messy tax records. |
| Asking Contractors to Use Specific Platforms | Adds friction to the onboarding process, as contractors may not want to create a new account, leading to delays in setup and work. |
What to Look for in a Payment Solution If You Don’t Want a New Bank Account
If your goal is to pay international contractors without adding new financial infrastructure, a few criteria are worth prioritizing:
- Pay using your existing bank account or card — no need to open or fund a separate account
- No wallet or pre-funding requirement — money moves when you send it, not before
- Transparent pricing shown upfront — you know the total cost before you confirm
- Clear delivery timelines — predictable, not vague
- Minimal setup for both you and the recipient — fast to start, easy to repeat
- Built-in fraud protections — reduces the risk of errors or scams
These aren’t luxury features. They’re the baseline for a payment workflow that doesn’t slow your business down.
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How Remitly Business Lets You Pay Contractors Without Opening a New Bank Account
Remitly Business is built around exactly this scenario. You can send payments directly from your existing bank account, debit card, or credit card — no Remitly wallet to fund, no new financial account to open, no minimum balance to maintain.
Your contractor doesn’t need a Remitly account either. Before you confirm any payment, you’ll see the full cost and estimated delivery time — no surprises.
For small businesses making their first international payment, that kind of clarity matters. You’re not guessing at fees or hoping the money arrives on time. Remitly Business backs its delivery with an on-time guarantee: if your transfer is late, your fees are refunded.
The platform connects to a global network covering 170+ countries, 100+ currencies, and over 5 billion bank accounts. Whether your contractor is in Mexico, the Philippines, or Eastern Europe, the infrastructure is already there.
Remitly Business is currently available for small businesses based out of the United States, United Kingdom, and Canada, subject to certain terms and conditions. Check back as we expand to more countries.
Step-by-Step: Paying an International Contractor Without Opening a Business Account With Remitly Business
Here’s how the process works in practice.
Step 1 — Set Up Your Payment Tool
Create a Remitly Business account and complete verification. Setup is straightforward and doesn’t require you to open a new bank account or change how you currently manage your finances.
Step 2 — Add a Recipient and Payment Amount
Enter your recipient’s email address and the amount you’d like to send.
Step 3 — Confirm Cost and Delivery Timing
Before sending, you’ll see the exchange rate, any fees, and the expected delivery date. What you see is what you pay — no hidden charges after the fact.
Step 4 — Send and Track the Payment
Confirm the transfer and track it in real time. Your contractor gets notified when the payment is on its way and when it arrives. No chasing, no uncertainty.
There are no monthly fees and no long-term commitment required.
When You Might Still Want a Business Bank Account
Avoiding a business bank account indefinitely isn’t the goal here — the point is that you don’t need one to get started. As your operations grow, a dedicated business account becomes more useful for separating personal and business finances, simplifying bookkeeping, and meeting tax or payroll requirements.
Think of it this way: start simple, then add structure as your needs demand it. You can begin paying international contractors today and add a business bank account later when the complexity justifies it.
Why Simplicity Matters When You’re Just Getting Started
Running a small business means managing a constant list of priorities. Adding a new financial system — even a useful one — takes time, mental energy, and follow-through. For many owner-operators, that overhead is reason enough to delay hiring the contractor they actually need.
Starting with a simple, low-friction workflow lets you move forward without stalling. It builds familiarity with international payments in a low-risk way, and gives you confidence to scale once you’re ready. Remitly Business is designed with that reality in mind — international payments that fit around how you already work, not the other way around.
Start Paying Contractors Without Adding Financial Complexity
You don’t need to open a business bank account before you can start paying international contractors. The right payment tool lets you use the financial infrastructure you already have, with transparent costs and predictable delivery built in.
As your business grows, your financial setup can grow with it. But that’s a future decision — not a prerequisite for today’s payment.
If you want to start paying international contractors without opening a new bank account or managing additional financial tools, Remitly Business lets you send payments directly from the bank account you already rely on — with transparent pricing and predictable delivery. Get started with Remitly Business.
Frequently Asked Questions (FAQs)
What is Remitly Business?
Remitly Business is a payment solution designed to help businesses send international payments seamlessly. It allows you to pay contractors and vendors globally without needing additional financial tools or specialized bank accounts. Currently available for small businesses based out of the US, UK, and Canada. Check back as we expand to more countries.
How does Remitly Business ensure transparency?
We prioritize transparent pricing with no hidden fees, ensuring you know exactly what you’re paying and your recipients know precisely what they’ll receive. Combined with predictable delivery times, you can trust the process every step of the way.
Do I need a separate bank account to use Remitly Business?
No, you can make international payments directly from the business bank account you already rely on. There’s no need to open new accounts or complicate your financial setup.
How secure is it to use Remitly Business?
Security is one of our top priorities. Remitly is built with multiple levels of security at its core. We work with trusted global banking and payout providers, giving you peace of mind with every payment.
Can I track my payments with Remitly Business?
Yes, you can monitor the status of your payments in real-time, ensuring transparency and control over your international transfers.