Logistic Net develops the activity of guarantee warehouse.
The Anglo-Saxon term Escrow identifies a written agreement between two parties under which money or property titles, object of the contract, are deposited with a third party as security, then released to the satisfaction of certain conditions specifically provided by the parties.
In such a kind of operation, the shipper addresses to an escrow agent – bank or international credit institution – who opened a blocked account, on both parties’ instructions, until the fulfillment of the accorded contractual activities. When these requirements take place (shipment of the goods or supply of the service) the exporter becomes the beneficiary of the deposited sum and he receives so the payment for the requested service.
Briefly, the shipper deposits in the escrow account the value sum of the contract; he waits for the documents he will check as accorded and for the shipping of the goods from the exporter and if satisfied (after control of the received goods) he orders to the bank (escrow agent) to refund the exporter with the sum before deposited.
So, the aim of the escrow account is to safeguard the duties of both parties, offering them a financial assistance at a low cost. If the supplier does not deliver the product or the service does not reflect the conditions of the contract, the escrow agent ensures that the money deposited before from the buyer will be refunded, after checking that the supplier still owns the goods he should send or that the goods will be returned back to him.