How MSMEs And Freelancers Can Optimize Cross-border Trade And Foreign Exchange

Many freelancers and micro, small, and medium enterprises (MSMEs) have been finding ways to keep their portfolios strong in the wake of the COVID-19 pandemic. But some businesses that have long driven growth in many economies may struggle to keep their businesses afloat in an increasingly digital-first culture. 

PayPal Holding Inc PYPL's recent Cross Border Trade (CBT) Report 2021 indicates that cross-border trade is a multibillion-dollar opportunity that may enable much-needed growth for MSMEs and freelancers.The study comes as increased global connectivity continues to contribute to "borderless" economies in response to the pandemic's effect on brick-and-mortar businesses. 

PayPal's report points to export opportunities as the future of e-commerce, proving that cross-border trade opportunities can improve business for freelancers and MSMEs. To better understand how small businesses can take advantage of the current market, let's explore some ways to globalize freelance opportunities and expand cross-border trade.

Use freelancer platforms to network globally

Even most social business leaders know that networking can be a challenge. Networking to secure new clients has, until very recently, required professionals to attend local, in-person events and follow up with a limited pipeline of business prospects. 

But the pandemic has made virtual connections more important than ever, and professional networking is no different. For freelancers, in particular, a strong virtual platform is absolutely essential, particularly for making international connections. A good freelancer platform makes the networking process simpler and more efficient and provides professionals with a global pipeline of potential clients.

According to a recent survey, three out of four freelancers say technology has made it simpler to find work, making it easier than ever to connect with high-quality clients and increase their earnings. Using a freelancer platform allows professionals to search for clients and services even outside the country.

If there's a company you admire that values freelancers and pays them well, freelancer platforms allow you to contact them directly with the services you offer. You can essentially bypass the gatekeepers and connect with like-minded professionals worldwide.

Use online brokerages to simplify foreign investments

Bringing in foreign trade doesn’t necessarily confine freelancers and MSMEs to selling their services and products. Online brokerages make it easy for anyone to invest in foreign ventures and currencies all around the world. 

In the past, investors had to make phone calls to brokers who would put international trades through for them. In today’s market, trading online happens almost instantaneously. This opens up many opportunities to invest depending on your values, financial goals, and risk tolerance.

There are multiple avenues that freelancers and MSMEs can take to get started trading online and investing in foreign currencies and businesses. To trade online, you’ll utilize a broker, website, or trading app that allows you to trade on the international market. When using digital trading platforms, you will simply have to make an account and fund it so you can start buying shares or other assets.

Trading apps and platforms are the windows through which MSMEs can access diverse markets and make international trades. Most trading apps these days can be used on desktop computers and mobile devices such as smartphones and tablets. Search for apps that have easy-to-use dashboards, provide an overview of your portfolio, and set “stop-loss” and other automated functions to improve your trading experience. 

Use VPNs to keep communications secure

If you’re interested in getting the most out of cross-border trade, you need a secure way to communicate with international clients. When managing a business remotely, invest in a virtual private network (VPN).

As Sydney-based cybersecurity expert William Ellis of Privacy Australia notes, a VPN can create an encrypted communication channel between you and your contacts, so you can feel confident that your internet traffic is going through a secure tunnel and keeping your data private. 

For freelancers and MSMEs, a VPN can reduce downtime, increase productivity, and, ultimately, maintain the flow of income from international business. VPNs are also essential for freelancers and MSMEs who may travel abroad to visit clients. 

In countries like China, for example, it's impossible to access certain websites (like Google or Facebook) while using a China-based IP address.  In these cases, VPNs can maintain continuous and secure global connections with your clients by providing you a U.S.-based IP address, even when you're accessing the web outside of the country. 

The US VPN market alone is estimated at $15.1 billion in 2021, showing how concerned internet users are with the increased risk of cybercrime. But there are free and low-cost options out there that are great for small businesses. Most VPN services are built on open-source protocols like OpenVPN and are simple to install. 

Thanks to VPN encryption, the chances that your data will be hacked is greatly reduced. Plus, your IP address looks like you’re accessing the internet from the physical location of the VPN server, creating a level of anonymity unmatched with a traditional ISP.

Conclusion

There are many ways to harness technology to your advantage as a freelancer or MSME business owner. Get yourself set up on a freelancer platform that makes it easy to reach out to international prospects and market yourself to potential clients all over the world. As you accelerate your international growth, make sure to invest in a VPN that can keep your data protected from malicious actors. 

And if you're interested in bringing in revenue from investments in foreign currencies, assets, and enterprises, you'll need to use an online trading platform to manage your investment portfolios. The future of business is global, and now is the time to start pushing your small business into the international market.