Trade

When entering into a trading transaction with previously unknown parties, you may desire protection for non-payment by the buyer or protection for non-performance by the seller. A buyer or seller can invite the counterparty to settle its trading with escrow to secure the transaction. Acting as a third party, Fortis Escrow achieves this by providing both the buyer and the seller with a safe and efficient process that guarantees problem-free transactions: buyers have the opportunity to inspect the goods before instructing Fortis Escrow to pay and sellers are assured that - if the goods are in accordance with the terms of the sales agreement - payment is guaranteed since the money is already in the escrow account with Fortis Escrow before the goods were sent.

A single escrow agreement between the same buyer and seller can cover many transactions.

Escrow Example

An Japanese seller wants to sell cranes to a Polish buyer. The Polish buyer prepays into escrow. The seller delivers the bill of lading to Fortis Escrow which upon receipt releases the money in escrow to the seller and the bill of lading to the buyer. In the escrow agreement buyer and seller have agreed that if the delivery is not within the time agreed, the money in escrow will automatically be returned to the buyer.

A Dutch trader buys commodities from a British supplier and sells to a German buyer. The German buyer is prepared to pay in advance into a trusted third party account. The prepayment of EUR 1,625,000 is to be released to the British supplier and the Dutch trader simultaneously, such without the German buyer knowing the identity of the original supplier. The escrow agent releases the amount in escrow when the German buyer signs the escrow release instruction after having accepted the commodities.

The advantage
During the transaction the seller knows that the buyer has the ability to pay, and the buyer knows that seller has to deliver first. This solution is far more secure then a prepayment to the seller and is less timeconsuming than a Letter of Credit.

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Fortis Escrow NL

Trade

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Escrow Example

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