The benefits of a digitalised escrow service

A digitalised Escrow service is easier to access, reducing cost by eliminating needless bureaucracy typically involved with traditional trade security products offered by banks, such as Letters of Credit. The result is a service that can efficiently cater for smaller as well as larger consignments, shipped by ocean container, air or truck.

The extent of the bureaucracy involved in traditional banking products is such that it can discourage parties from completing the required processes, or even sway them to decline potential business altogether. Additional complications can arise when attempting to mitigate financial weakness of an issuing bank, leaving aside the conditionality contained in the document itself potentially making it unenforceable. The Escrow service is hence simpler and safer:

  • A transparent fee structure, competitive pricing and a less operationally cumbersome alternative to the traditional trade security services as provided by banks.
  • Safeguarding the interests of both buyer and seller, as funds are only released to the seller and the goods transferred to the buyer when both parties have performed under the Escrow Agreement in accordance with the Trade Agreement.
  • A straightforward and efficient KYC on-boarding process finalised promptly.
  • On-boarding less administratively intensive in respect of repeat transactions as the KYC data-set is securely held on the platform. Subject to the KYC data-set remaining the same.
  • Faster and less cumbersome settlement of transactions will bring about quicker receipt of funds leading to an increase of available working capital for buyer as well as seller.
  • Due to the digitalised nature of the process, there is no longer the risk of loss of physical documentation and the potential for fraud is greatly reduced.
  • The lack of the contractual conditionality compared to traditional bank security documentation, such as letters of credit, will enhance the flow of the process, avoiding delays and additional costs.
  • A fully transparent and auditable process comprising the activities of all parties involved.
  • 24/7 access to a secure cloud-based platform  
  • Dashboard functionality, document uploads and (optional) notifications