How to earn forex as a small business

In the dynamic economy of TT, small businesses often face the challenge of accessing foreign exchange (forex) to purchase materials, pay overseas vendors, and maintain robust operational capabilities. Given the persistent forex shortage, it's crucial for local entrepreneurs to explore innovative solutions to generate and manage their own forex reserves. This article outlines essential infrastructure and strategies that can empower small businesses in TT to earn, retain and access their forex, enhancing their financial stability and operational efficiency.

Establishing a local business USD account

The first step for any small business aiming to earn forex is to set up a local business US-dollar account with a bank of choice. This account serves as the primary repository for foreign currency earnings, providing a secure and regulated environment for handling international transactions.

Choosing the right payment processors

To facilitate the receipt of forex, businesses must integrate reliable payment processors that support US-dollar transactions. Options include:

First Atlantic Commerce: Ideal for businesses with a significant volume of international transactions, offering robust security and compatibility with various e-commerce platforms.

WiPay: A versatile choice that supports both website-based sales and digital invoices, making it accessible even for businesses without a physical web presence.

PayPal: Widely recognised and trusted globally, PayPal allows for seamless transactions directly linked to bank accounts, negating the need for credit-card use. It’s particularly beneficial for transactions with companies that prefer bank-account payments.

Payoneer: Another strong option for businesses looking to engage with international clients and marketplaces.

Bank-specific solutions: Many local banks offer tailored e-commerce solutions like Republic E-Pay, FCB Easy Biz, and Scotiabank E-com+, which allow you to send digital invoices, create payment links or even build an e-commerce website using their services.

Integrating payment solutions with your website

For businesses with an online presence, adding products or services to a website and integrating these payment processors is crucial. This allows you to set your website to US-dollar processing, so that all things paid for on your website, can be processed in US dollars and the funds deposited to your local US-dollar account.

Using digital invoices for businesses without a website

For those without a dedicated website, the same payment processors facilitate the issuance of digital invoices to international clients. This method still ensures that payments are received in US dollars and deposited into the local US-dollar business accounts.

Leveraging PayPal and Wise for enhanced flexibility

A strategic combination of PayPal and Wise can provide unparalleled flexibility.

With PayPal, businesses can receive payments directly from clients’ bank accounts worldwide or they can process payments on your website. Subsequently, funds can be transferred to a Wise Digital Bank account, where they remain in US dollars.

Wise offers both digital and physical debit cards, that allow you to spend up to US$41,000 a month, or you can connect your local US-dollar business accounts to Wise, and it will use the Swift network to send those funds into your local US dollar business accounts. You can jump on Google and search Wise in Trinidad and Setting up PayPal in Trinidad to learn how to set up both tools.

One more thing: PayPal integrates into every single Web Builder platform like Wix, WordPress, Squarespace, Shopify, Joomla, Magento and many more. Using the PayPal and Wise combination will allow you to be paid from any of these platforms in TT.

Accessing your forex from local banks:

Now, this is where the frustration comes in for most. The first hurdle is getting the forex into the bank system; the second, more important hurdle is getting it out. Local banks typically will make you apply for the money, and most will give you your cash with a three-seven-day wait period. One thing that most people don’t know is that window applies to when you want physical cash. If you have the US dollars in your account, they will allow you to wire the money out of your account.

Opening a US bank account in the US:

A great option for businesses is to register and open a bank account in the US. Here is how to do that remotely from TT. You can use companies like Start Global, First Base, Jump Start Filings and Doola to register your business and open a US bank account. Then when you set up your website or digital invoice solutions, use services that connect to directly to your US bank accounts, so you have full access to all the US dollars you need. Finally, every business needs to learn how to do digital marketing properly, so that they can start getting clients outside the TT market to tap into other economies to fund their accounts.

Keron Rose is a digital strategist who works with businesses to build their digital presence and monetise their platforms. Learn more at KeronRose.com or listen to the Digipreneur FM podcast on Apple podcast, Spotify, or Google podcasts.