This is how an escrow agreement works:
Buyer and seller agree to terms. The agreement will include a detailed description of the equipment being sold and purchased (age, description, make, model, serial number/s, engine number/s, condition, accessories, etc), the agreed payment (currency and value of the sale price) and the point at which European Freight Express, as the escrow agent, is deemed to take possession of the goods (for example, European Freight Express is deemed to take possession on receipt of official dock receipt at a nominated port if shipped under FCA or FAS Incoterms or when European Freight Express collects from the seller’s yard, under EXW Incoterm.)
Prior to the seller handing control of the equipment over to European Freight Express, the buyer will deposit the agreed payment (escrow funds) into the nominated European Freight Express currency account. Upon receipt of cleared funds, European Freight Express informs the Seller that payment is secure. Once the goods are in European Freight Express’ possession, we check the equipment matches with every detail of the description in the escrow agreement. As soon as we can confirm an exact match, we inform the buyer and after the buyer receives the product and confirm that everything is 100% in order, we release payment to the seller, usually by way of electronic funds transfer to the seller’s nominated currency account.
An escrow service provides excellent buyer and seller protection and is far less cumbersome than establishing a documentary letter of credit. A European Freight Express escrow agreement can be finalized in a matter of hours and presents a very economical payment protection solution.
European Freight Express is equiped with well trained proffesionals, in the feild of transport and logistics, Customer service is very friendly and always ready for your questions anytime..
Everything You Need to Know About European Freight Express® Escrow
How does European Freight Express protect the seller?
European Freight Express® protects sellers by verifying all buyer purchase funds up front before any exchange of items takes place. This eliminates the risk of non-payment or insufficient funds and guarantees serious buyers – not just window-shoppers..
How does European Freight Express protect the buyer?
European Freight Express® protects buyers by holding their funds in a neutral, third-party bank account until their purchase agreement is completed. Funds cannot be pushed to the seller without the buyer’s approval, protecting against misrepresentation and keeping honest people honest.
European Freight Express® buyers provide funds via bank wire transfers.
European Freight Express® only releases escrow funds at the specific requests of both the buyer and seller. Both parties should agree to expectations regarding the release of funds in the transaction details.
Examples:
Once the goods are shipped
Once the transportation company confirms pick-up
Once the goods are received and inspected by the buyer
The buyer can request a refund after the transaction has been completed, with a request to European Freight Express delivery driver. The request will be submitted to the seller for their approval and, once approved, European Freight Express will process the payment.
What is Escrow?
An escrow is a financial arrangement where a third party holds and regulates the exchange of funds for goods, on behalf of two parties involved in a particular transaction. Escrow is an increasingly popular means by which buyers and sellers, who do not have an established business relationship, can trade. It helps make transactions more secure by keeping the equipment and payment secure and released only when all of the terms of an agreement are met, as overseen by the third-party escrow agent.
Escrows are very useful in the case of a transaction where a large amount money is involved and a certain number of obligations need to be fulfilled before a payment is released. European Freight Express regularly acts as an escrow agent for customers seeking ways to protect against delivering high value items and not getting paid (as a seller) or sending large amounts of money and not receiving what they have paid for.
Most European Freight Express escrow service customers are buying and selling high value plant and equipment. They include;
International equipment dealers
Mining machinery procurement specialists
Used equipment suppliers
Sellers of fixed plant and equipment for mines
Brokers of industrial plant and machinery
Major construction companies
International yacht brokers
Agribusiness
Automotive importers and exporters
The escrow process is quite simple and provides protection to both buyer and seller, ensuring their international transaction can be safely carried out without risk of either party losing their money or valuable equipment due to fraud, facilitating secure transactions and enabling buyers and sellers to trade confidently.
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