Profitable to delay payments?

Waiting till the dollar is cheap in Europe?

[jouwpagina]

It is possible to ask for a delay of unlimited months of your payment.

I'm from Holland (EURO) and I was thinking if it was profitable to ask for a delay until the dollar and cheap and I will get more Euro's. Of course I will lose the interest.

Are there people from other countries that are using this strategy?

[blairsp]

My understanding is that you can ask for a postponement but it has to be done every month. You can't just say "pay me everything in time for Christmas" type of thing

[HitProf]

I think you can cash the cheque whenever you want, so you can keep it in your pocket untill the time is right for you.

[tombola]

1. Nobody knows if or when the dollar will get cheaper vs euro.

2. One thing's for sure: you'll lose the interest.

So what's your conclusion?...

[alvinfic]

Wouldn't waiting for a cheaper or lower dollar would be more disadvantage as you will be getting less euro?

[Mario123]

OK. Checks do have an expiry date. Unless it's written on the check itself, they usually expire within 12 months. And there are many banks that don't like stale checks (older than 3 months).

Anyways, here is what you should do: open a bank account in USD. Any bank in Europe will allow you to do it. Just ask them. Deposit your check into your USD account. You will earn interest on this money. Once you believe the exchange rate is in your favor, convert the dollars into euros.

Simple as that.

[WebWalla]

It's very easy to open a bank account in dollars and just keep the cash there until the moment's right.

[darkmage]

Don't forget it can go both ways. The dollar could fall against the euro like it did on this past weekend. By cashing a $US10,000 cheque Monday (today) instead of last Thursday, you would have lost about 200 Euros.

By bunching/keeping cheques you are actually increasing the long term risk. For example, if you bank the cheque once per month, then over the year you get the average rate. Good or bad movements are smoothed out. However if you hold off and the exchange rate moves against you, then you could be a lot worse off. Of course you could be better off, but it is an unknown. Many companies have gone bankrupt by betting the wrong way on exchange rates, even with expert advice.

DM

[jenkers]

hi,
it really very much depends how much interest you'd lose. But, if the cheques aren't for huge amounts then it could be worthwhile.

When I started off with Adsense I did not want the cheques straight away because of the bank charges for cashing foreign cheques. If you email google support before the 5th of the following month they will roll the months together.

You can do this as many times as you like, but they will pay out at the end of the year regardless.

[Lipik]

I asked Google-Team (Dutch-lang.) And they told me to email google before the fifth of the month to hold the cheque. And to do this every month as long as you want it to be hold. So for July earnings, ask befor 5 August.

[topr8]

the point here is this question.

are you in the webcontent business or are you in the currency speculation business? you need to decide.

[tombola]

I totally agree with topr8. Also remember what darkmage said in msg#8:

Many companies have gone bankrupt by betting the wrong way on exchange rates, even with expert advice.

[esllou]

cheques are valid for six months unless stated, not 12

[goodroi]

Don't wait on cashing the check. Just keep in a bank account as dollars and then exchange into euros later. The currency makret is a very hard market to play. I for one would not want to play in it.

[Roomy]

Call me a tired old cynic, but my natural paranoia vis-a-vis getting the dreaded account cancelled mail, Leads me to cash the cheque the minute I get it. If you delay payment for any length of time you run the risk of loosing a lot of money if someone decides your site has received fraudulent clicks.