How to pay Israeli freelancers and startups from abroad: currency, fees, timing

International buyers regularly hire Israeli developers, designers, analysts and early-stage startups. The practical goal is simple: invoices must be credited on time and for the exact amount expected, with a minimal back-and-forth about rates and references. This guide explains how to choose invoice currency, pick a payment route, plan timing around business days and cut-offs, and complete the last mile domestically so accounting on both sides stays clean.

Choose invoice currency: ILS or USD

ILS invoices suit suppliers who pay local expenses in shekels and want predictable credits. They require a conversion step before domestic payout, so ask providers to quote as “ILS delivered to beneficiary.” USD invoices can work in cross-border contracts, but many local obligations still settle in ILS. If a startup or freelancer invoices in USD, write down how conversion to ILS (if needed) will occur and who bears any slippage.

Pick your route based on volume and frequency

SWIFT via bank conversion is strong for higher-value invoices or when you need a thick audit trail (board approvals, grant reporting). Licensed FX intermediaries are efficient for weekly or monthly retainers and distributed teams: you fund in USD/EUR, the provider converts to ILS at a quoted spread and pays locally, often same day after file approval. For recurring flows, pre-agree a cadence (weekly/biweekly) so teams know when to expect funds.

Plan around Israeli business days and cut-offs

Israel’s banking days typically run from Sunday to Thursday, with cut-offs that may not match your home country. A missed cut-off pushes conversion to the next day and can change the rate. For launches, sprint acceptances and ad campaigns, send D+1 and leave a small buffer for invoice checks by the provider or receiving bank.

Last mile: Zahav/RTGS and interbank rails

International payers cannot initiate Zahav directly from abroad. The practical flow is: transfer in USD/EUR → convert to ILS via bank or licensed FX → domestic ILS credit over Zahav or regular interbank. Use a payment reference that maps to the invoice or milestone so reconciliation is instant and proof of payment is unambiguous.

Control total cost, not just the headline rate

Total landed cost includes your transfer fee, any intermediary or receiving-bank fees, and the FX spread. To avoid underpayments, ask for all quotes as “ILS delivered to beneficiary” (or “net USD to beneficiary” if the invoice is in USD). For stable budgets, negotiate banded spreads or a weekly rate window; for one-off large invoices, compare two quotes the same day.

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What to send with your payment so banks don’t ask questions

Keep a compact folder: contract or SOW, invoice, supplier details (company registration or freelancer ID), and basic evidence of service (acceptance note, time sheet, delivery email). Consistent descriptions across invoice and payment message cut bank queries to minutes and speed up domestic release to the supplier.

Real-world use cases

Monthly developer retainer: licensed FX with scheduled conversions and ILS delivery; quotes requested as ILS delivered. Design sprint with milestone acceptance: staged conversions mapped to each acceptance; domestic payout after acceptance to avoid disputes. One-off marketing invoice: SWIFT with a clear reference to the PO and a pre-agreed value date to ensure timely credit.

Common mistakes and easy fixes

Sending late on a cut-off day, using vague references (“services”), asking for a “best rate” instead of ILS delivered, or omitting the invoice in the file you share with the provider. Fixes: book one day earlier for critical launches, reference the invoice/PO, and keep quotes and confirmations in a single folder both parties can access.

Next steps

Pick the invoice currency, choose the lane (bank or licensed FX), and agree a delivery cadence. Request quotes in the format that protects the supplier’s expected amount (ILS delivered or net USD). Align value dates with launch or acceptance timelines, and validate the first run with a small test payment.

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Coordinated support

From route selection and KYC preparation to FX negotiation and last-mile ILS settlement, VelesClub Int. manages the process together with our trusted partner UNIBROKER, helping you pay Israeli freelancers and startups on time with full compliance and clear documentation.