Introduction to Escrow
In Simple Terms
An Escrow Agent is a trusted third party, who ensures a safe,
efficient and quick method of buying and selling products and services on an
International basis.
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?
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.
Fees
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.
Conclusion
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. |
