- Escrow Agents and Paymaster Services
Introduction to Escrow in Simple Terms
The Escrow Agent will accept funds into the escrow account from the ‘Buyer’ and confirm to the ‘Seller’ that the funds are held pending delivery or confirmed shipment of the goods, or in the case of a financial transaction, an approved Bank to Bank verification by Swift.
What is an Escrow Agreement?
An Escrow agreement is a document agreeing terms between a buyer and seller. Once the terms of a transaction are confirmed between the parties, neither party can change the terms of the agreement without both parties agreeing in writing. This effectively prevents either the buyer or seller changing the agreement for some commercial advantage. Once the Escrow Agreement has been signed by both parties the transaction can go ahead quickly, safely and efficiently
Why do I not just use letters of credit?
Letter of Credit from 1897
Letters of credit have always been the usual method of transacting International trade. However, complications can and do arise. International Banks can be difficult to deal with. Your Companies credit rating may prevent a Bank providing your business with the necessary facilities. Your Company may be recently formed with no ‘track record’ or you may be dealing in countries and Banks that are not sufficiently well rated to ensure a successful Letter of Credit transaction.
Under these circumstances an Escrow agreement is an ideal solution. You do not have to expose yourself or your Company to scrutiny by your Bank. No credit score is required and no Bank references are required. If you wish to use our Escrow using a letter of credit we can assist you. Please contact us for further Information.
Transaction fees are a total of 2% plus nominal Bank charges. It is usual that the Escrow fees are paid 1% by the buyer and 1% by the seller.
The use of our Escrow facility will ensure a safe and positive outcome for your International transactions. It ensures that only buyers who have funds and are capable of proving it are entertained. The Escrow facility ensures that sellers are dealing only with properly qualified clients who can and will pay and buyers receive the product they are paying for.
We live in difficult financial times. Ensure your next transaction is a safe one.
The Current collapse in confidence of the International Banking system and the huge amounts of International fraud being experienced in these troubled times enables us to make a strong case for the use of our services.