Escrow Trading Fiduciary Services

Independant 3rd Party secure Escrow Trading Fiduciary service protecting both the Buyer & the Supplier/Manufacturer

Bluestone Escrow services partner SA Guarantee Ltd (Seychelles) which has an Offshore Fiduciary ESCROW Account with Bentley Legal in HSBC London & Mauritius.

HSBC London Escrow Account can deal with:

  • Complex structures

  • Very large funds being SWIFT in and out of the account

  • Certain types of financial instruments

Whats is an Escrow account?

Put simply, an escrow account is a bank account with defined conditions for the release of funds. An escrow agent SA Guarantees (Bentley Legal) is appointed by the employer and contractor to hold a sum of money on trust.

Note:  SA Guarantee Ltd (Seychelles) is a registered Cell Captive with Mutual & Federal Risk Financing Limited

Mutual & Federal Risk Financing Limited is a registered Insurance Company in South Africa.

Structure:

  • Mutual & Federal Risk Financing Limited is 100% owned subsidiary of Old Mutual Insure, with Old Mutual Insure being a 100% owned subsidiary of Old Mutual Group

  • Fitch Rating: AAA with (zar) stable outlook

Escrow Services Market

Ideal for manufacturers and suppliers in Africa or rest of the world, project milestone funding , maintenance contracts or Commodities mined and exported in terms of off-take contracts

Supporting Products

  • Advance Payment Guarantees

  • Performance Bonds

  • Deferred Payment Guarantees

  • Custom and Excise Bonds

  • Logistic Guarantees

  • Bid and Retention Bonds

  • Fuel Guarantees

How it works

The Buyer

  1. Buyer and Seller conclude Trading and ESCROW Agreements which includes use of SA Guarantees ESCROW Services and agreed milestone payments and supporting buyers independent verification representatives/agencies (Engineers, Quality Surveyers etc)

  2. The Buyer deposit the full contract price into the HSBC US$/EURO Escrow Account

  3. An Advance Payment Guarantee is issued to the buyer and their Bank/Funders as security

  4. A Performance Bond is issued to the buyer

  5. Escrow account agreement is signed

  6. Funds are only released against milestones being verified and attained with payment instructions signed by the supplier, the buyer and SA Guarantee as Escrow Agent

  7. Representative of the buyer sign progress certificate confirming the milestones. The representative can be a Quantity Surveyor, Bureau Veritas, SGS or similar


Benefits

  • Not subject to US$ shortages which frequently occur in Africa

  • Funds are retained in US$/EURO and only converted to local currency upon verification of a milestone

The Buyers benefits are;

  • The funds are protected and secured by guarantees and bonds from AAA+ rated Insurance Company

  • Independent Verification of milestones by Buyers representatives/agencies

The Supplier benefits are;

  • Knowledge that the full contract sum is in Escrow account and under control of reputable Insurance Company

  • US$ Shortages will not be a factor or result in delays

  • Can manufacture at maximum efficiency and productivity

  • Milestone payments are received within 48 hours upon the completion of a milestone having been verified

BSG partner SAG's Clients

Bluestone Service Group

Cape Town, South Africa

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