Specialised services

Escrow services

Having a blocked bank account at your disposal is a useful business tool in various situations, including: when acquiring companies; when buying or selling commodities and heavy equipment; and when executing construction projects, for example.

How do escrow accounts help secure acquisitions? Buyers want cash collateral security to cover the sellers’ liabilities. The sellers seek payment security — the knowledge that the purchase price is secure, now and in the future. For the financial settlement of trading transactions, escrow secures the payment obligation of the buyer and non-performance of the seller. For international construction projects, escrow facilitates complex cross-border financial settlements.

Securing buyers’ and sellers’ obligations in corporate acquisitions; assuring payment obligations in trade transactions; creating payment guarantees for international construction projects, in all of these contexts, our Escrow provides trusted, third-party business solutions in most jurisdictions. The aim is a secure and successful transaction that is also comfortable and fair to all parties. We deliver this proactively and reliably.

Our services include:

Acquisition Escrow services
Trade Escrow services
Project Escrow services

Acquisition Escrow Services

A company is to be acquired. The buyer agrees to certain calculated risks. But what about any possible liabilities revealed by the due diligence survey?

How can the buyer be protected against, for example, incomplete environmental permits? The departure of key managers? Serious financial underperformance and/or other threats? The buyer requires 100% coverage for these potential liabilities. The seller, however, needs to be assured of payment in the event that no liabilities are found.

The best solution? We set up an agreement to retain a certain amount of the purchase price in a dedicated blocked bank account: the escrow account. Buyer and seller reap the benefits of the escrow agreement, where the release conditions of funds are negotiated expertly. And given that both buyer and seller seek maximum security, Intertrust is a natural choice, with the experience, skills and capacity to act on short notice. Other escrow applications are: securing performance bonds, bid bonds, multi-party investments and fractional ownership structures.

Trade Escrow services

The scenario: you enter into a trading transaction with previously unknown parties. You, the seller, want protection for non-payment by the buyer.

However, if you’re the buyer, you need assurance that the seller will deliver. Both the buyer and the seller can benefit from escrow in order to secure the transaction.

Acting as a trusted third party, Intertrust provides both buyer and seller with the required security. Here’s how it works: the buyer prepays the agreed amount to the escrow account. We confirm receipt of this amount to the parties. The seller ships the goods and sends the bill of lading to the escrow agent. The escrow agent dispatches to the buyer the bill of lading and possibly also the inspection certificate. Simultaneously, the seller is paid out of the amount in escrow.
The advantage? The seller is assured that—assuming the goods meet the terms of the sales agreement—payment is guaranteed. Furthermore, the escrow arrangement between the same buyer and seller can be used for repetitive transactions.

Project Escrow services

When it comes to international (construction-) projects, there are many possible applications for escrow solutions: financial settlement by a trusted third party, the distribution of funds, debt restructuring, and / or the safe distribution of subsidies.

For example: consider the financial arrangements for construction projects. Principals require performance guarantees. Subcontractors need payment security. Intertrust handles everything: setting up the account; managing the funds; distributing payments. With an escrow agreement we assure that all parties receive what they’re entitled to (payments or services).

Intertrust is the trusted, neutral third party that orchestrates the arrangement; we expertly negotiate and execute release conditions for complicated cross-border projects. The benefit to you? Escrow agreements that provide the much-needed security to all parties involved.

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