How to Pay Subcontractors and Issue Multi-Party Invoices
One client. One invoice. Multiple subcontractors paid accurately and on time — with full project-level tracking from work logged to settlement confirmed.
How do you pay multiple subcontractors from one client payment?
With Petl Pay, you define split rules per project — by percentage, fixed amount, milestone, or time logged. When the client pays the invoice, Petl Pay generates payout instructions for each subcontractor and coordinates settlement via licensed third-party providers. Every step is tied back to the same project record.
- One client-facing invoice, regardless of how many subcontractors are involved
- Contributor payout instructions generated automatically from split rules
- Cross-border settlement across USD, ZAR, GBP, EUR, and LATAM corridors
- Full audit trail connecting work logged, approvals, invoices, and settlement status
Who this is for
The subcontractor payment problem
Most teams handling subcontractor payments end up with the same stack: a time tracking tool, a separate invoicing tool, a bank portal, and a spreadsheet to hold it all together. Each project means re-doing the same manual process — calculating who gets what after fees, chasing separate invoices from each subcontractor, and reconciling it all at month end.
When subcontractors are in different countries, it gets harder. Exchange rates, intermediary fees, and slow settlement windows add friction to every payout.
The core issue is that most tools were built for a simpler model — one employer, one employee, one payment. They were not designed for the way project-based work actually runs.
How Petl Pay handles subcontractor payments
Petl Pay starts with the project. You define the client, the scope, and who is contributing — then set the split logic once. From there, the workflow runs consistently across every project.
- Set up the project and contributorsCreate a project in Petl Pay and add your subcontractors as contributors. Define their rates, roles, and how value is allocated — by percentage, fixed amount, milestone, or hours logged.
- Log and approve workWork logged by contributors flows into the project record. Approvals happen inside the same workflow, so there is no separate approval chain to manage.
- Generate the client invoice automaticallyOnce work is approved, Petl Pay drafts the client invoice directly from the project. One invoice, covering all contributor work, with your margin built in.
- Coordinate subcontractor payoutsWhen the client pays, Petl Pay generates payout instructions for each subcontractor based on the split rules. Instructions are transmitted to licensed third-party providers for execution.
- Track everything in one project ledgerEvery step — work logged, approvals, invoice issued, payout instructions sent, settlement status — is tied back to the same project record. No spreadsheet required.
Multi-party invoicing explained
Multi-party invoicing is what happens when more than one contributor is involved in delivering a single client engagement. The client sees one invoice. Behind it, there are multiple contributors — subcontractors, specialist partners, fractional experts — each with their own allocation.
Petl Pay handles this natively. You do not need to manually consolidate invoices from each subcontractor before billing the client. The project structure does that work for you.
Scroll to see full table →
| Capability | Traditional approach | Petl Pay |
|---|---|---|
| Client invoice | Created separately from contributor tracking | Auto-generated from approved work |
| Contributor splits | Calculated manually per project | Defined once, applied consistently |
| Subcontractor invoices | Received separately, reconciled manually | Managed inside the project |
| Audit trail | Scattered across email and spreadsheets | Single project record |
| Cross-border payouts | Manual bank transfers, variable fees | Wallet-based, ~0.5% fee |
Cross-border subcontractor payments
Paying subcontractors across borders adds a layer of complexity that most invoicing tools were not built to handle. Exchange rates shift between invoice date and payment date. Intermediary fees reduce what the subcontractor actually receives. Settlement can take days.
Petl Pay's built-in wallets support faster settlement across key corridors. Subcontractors in South Africa, the UK, Europe, and LATAM (including ARS, BRL, CLP, and COP) can receive funds quickly, with fees averaging around 0.5% and settlement typically within around 60 seconds where supported.
Funds can be held in major currencies (USD, EUR, GBP) or withdrawn into an existing bank account. Stablecoin-linked flows (USDC, USDT) are available where supported via KYC or KYB-verified wallets.
Payment execution and custody are handled by licensed third-party providers. Availability varies by corridor and onboarding status.
Petl Pay vs alternatives for subcontractor payments
Scroll to see full table →
| Feature | Deel | Wise | Bank transfer | Petl Pay |
|---|---|---|---|---|
| Multi-party invoicing | No | No | No | Yes |
| Project-linked splits | No | No | No | Yes |
| Work log to invoice automation | No | No | No | Yes |
| Cross-border settlement | From $5 SWIFT | Variable | Slow, variable | ~0.5% via wallets |
| Project audit trail | Limited | No | No | Full ledger |
| Stablecoin support | No | No | No | Yes (USDC, USDT) |
Common questions about paying subcontractors
How do I pay multiple subcontractors from one client payment?
Set up a project in Petl Pay, define your split rules, and issue one client invoice. When the client pays, Petl Pay generates payout instructions for each subcontractor based on the splits you defined. Settlement is coordinated via licensed third-party providers.
Can subcontractors in different countries be paid at the same time?
Yes. Petl Pay supports multi-currency payout instructions across USD, ZAR, GBP, EUR, and LATAM corridors. Each contributor can have their own currency and recipient preferences. Actual settlement depends on the third-party provider and corridor availability.
Do subcontractors need to be on Petl Pay?
No. Teams can onboard contributors selectively depending on how deeply they want to use the workflow and payment features.
Does Petl Pay replace payroll?
No. Petl Pay is designed for subcontractors, freelancers, and partner agencies — not employees on a payroll cycle.
Can I use Petl Pay alongside Stripe or Wise?
Yes. Many teams keep Stripe for client card payments or Wise for simple transfers, and use Petl Pay for project logic, multi-party allocation, and settlement visibility.
Is Petl Pay a payment processor?
No. Petl Pay is a non-custodial software platform. It does not hold or execute payments. Payment execution and settlement are performed by licensed third-party providers.
Related pages
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