Supply Chain Escrow

Companies are more vulnerable than ever to supply chain disruptions. The Russia-Ukraine conflict, wider geopolitical implications, and continued COVID-19 lockdowns in China have compounded an already bleak global supply chain situation. Existing restrictions imposed on Russia continue to impact fuel costs for transportation companies which is contributing greatly to the current crisis within our logistics networks as well. With dependencies on not one but several suppliers in multiple countries, many companies are feeling exposed putting the fragility of global supply chains top of mind. There are a number of strategies that can be implemented to mitigate risk not least of which is preventing financial loss with digital escrow. 

Mitigating financial risk: Digital escrow

An escrow arrangement is a great way for both buyer and supplier to feel comfortable with their transaction. – especially when it comes to high-value transactions in an insecure trading environment. To satisfy the needs of both buyer and supplier, an escrow arrangement can be built into the contract, outlining the terms of the transaction. 

YataPay Secure is helping transform the escrow market. Escrow arrangements are now Quick and easy to set up on our digital platform making them cheaper and more accessible than ever. The streamlined process typically takes just four simple steps and can be set up in hours rather than days avoiding the complication and expense of dealing with banks and law firms. 

  1. Contracts and Onboarding: Payment(s) are conditioned on meeting certain terms, such as receiving goods or achieving delivery timeliness. Where necessary, staged payments can be built into the contract to allow payments to be released on the completion of each stage of work.

2. Due diligence: All parties involved in the transaction will undergo robust due diligence checks, including standard AML, and sanctions checks as well as bank account verification. This KYC process is critical for mitigating the risk of fraud or human error and the checks are regularly refreshed depending on the length of the contract. 

3. Funds in: When funds are in held by the escrow account, they’re ring-fenced for that order and protected against insolvency. This gives sellers the confidence to despatch goods with peace of mind knowing the funds are secure. All approved parties receive regular status updates and have access to our digital platform where they can track the status of funds in real-time and upload, store and access documents relating to the transaction such as invoices, terms, proof of delivery, etc. 

4. Funds out: When the conditions of the contract have been met and when parties to the transaction agree the funds are paid out of the account. Arbitration is built into the service to help in any dispute. 

YataPay Secure offers solutions that help businesses trade in confidence.

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