International trade is all about the trust. You cannot do
business without having trust that the buyer or the seller of the product is
going to follow the trade ethics. It is here that Escrow Services come to use.
This service diminishes the gap of trust present between the two parties, the
exporter, and the importer. This is one of the reasons why Escrow Services in Malaysia is so much in demand.
Axios Credit Bank understands this and that is why here some
of the important points have been discussed about the role of Escrow services
in International Trade. Scroll down and you will get a fair idea about both the
pros and cons of Escrow Services.
Advantages of Escrow Services
As you already know, the demand for Escrow services has taken a quantum jump with the increase in international trade. Today, more and more companies involved in international trade opt for Escrow Services. Definitely, this points out that the benefits of this service can outweigh its shortcomings. However, Axios Credit Bank understands the importance of putting both the things simultaneously. This will help you in making a prudent decision. Hereby, some of the pros of Escrow Services have been discussed and these are:
Transparency
The working process of escrow services in international
trade is quite transparent. Both the exporter and the importer of the products
can see how the payment transactions are getting executed. This makes the whole
process crystal clear.
Low Transaction Fees
The trade transaction fee of Escrow services is quite low.
In fact, it is nearly negligible if compared with other services. This is one
of the major reasons why the popularity is enhancing for the escrow services in
Malaysia.
Secure
This is a safe and secure way of managing the money
transactions in an international trade. The export payment mechanism becomes
easier and smoother with Escrow services. Both the parties do not need to
bother about their money. It is safe with Escrow and the payment to the main
party is disbursed only when the shipment is dispatched by the other party.
User-Friendly
This is one of the most user-friendly services in trade
transactions. Here, all the work is done after considering the problems of both
the exporter and the importer.
Drawbacks of Escrow Services
Issue of Trust
The trust of both the parties, need to be strong on the
third party service, which is handling the monetary transaction. This means
that the level of trust which traders have on banks, that level of trust they
do not have Escrow service. Undoubtedly, the service is simpler and speedy but
the faith that this service will not lead to any other future or tax-related
problems dread many to select it.
New to Many Users
Even after so many years, Escrow
services in Malaysia seem to be new to many. One of the reasons
behind this is that most of the traders still feel safe in the hands of banks
as they haven’t used this type of trade money transaction service.
How Axios Credit Bank helps you?
Axios Credit bank is an International bank that offers you the best customer
services. It knows you challenges in doing international trade. Whether you are
an exporter or an importer, we know how much it is difficult to manage Escrow
services. That is why we provide you bank guarantee or letter of credit, which
is credible. You can trust us, as we have a proven track record. As a financial
institution, we know how we can offer you best service. You just need to get in
touch with our team and you will receive the most appropriate guidance which
will work as a lubricant in speeding your monetary transactions in
international trade.
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