Escrow services to be available in Azerbaijan

By Azernews

By Sara Israfilbayova

Azerbaijan’s Digital Trade Hub will make it possible for entrepreneurs to use the services of Escrow, a trusted third-party that holds funds in a secure Escrow Account.

Escrow services allow both exporters and importers to protect a transaction by placing funds in the hands of a trusted third party that collects, holds and disburses funds until a specified set of conditions is met by the instructions of the exporter or importer.

Shipments are tracked to ensure the seller shipped, and the buyer received the merchandise. This can be a mutually beneficial method of payment on international trade transactions.

The Center for Analysis of Economic Reforms and Communications announced that the service also allows to reduce the potential risk of fraud. 

How escrow works. The importer (buyer) sends the agreed purchase amount to the escrow service.

After payment is verified, the exporter is instructed to ship the goods. Upon delivery, the importer (buyer) has a predetermined amount of time to inspect and accept the goods. Once accepted, the funds are released by the escrow service to the exporter. The escrow fee can either be paid in full by one party or split evenly between the exporter and the importer.

While traditional escrow service is quite difficult and must be obtained through banks and lawyers, escrow.azexport.az provides online escrow services at affordable rates. While the payment is 'In Escrow' the transaction can be safely carried out without risk of losing money or merchandise due to fraud. This eliminates all legal jargon and allows for secure transactions and confident buyers and sellers.