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Scrap Monster
Olympus-ims.com
XRF Spectro
ScrapMonster Escrow
Powered by Acerium

ScrapMonster has partnered with Acerium to present our newest product, escrow. In hopes to further the services currently available on our website we are launching another feature to help our clients perform scrap transactions.We are confident that our escrow product will allow all of our members to buy and sell scrap quickly, securely and at a low cost.Our escrow service is faster and cheaper than a letter of credit process.

Email or Call us today 1-646-783-9752

How Does it work?
1

A ScrapMonster escrow transaction begins with both the buyer and seller agreeing to the terms of the deal. Both parties formally sign an escrow Contract, which acts as a binding document on the transaction. Acerium acts as a trusted neutral third party throughout the deal.

The buyer wires funds into an escrow account. The funds are secured and fully insured as per U.S. Law.

2

The seller then ships the material and sends copies of the shipping documents to the buyer and Acerium. The buyer reviews the shipping document copies to ensure they comply with the terms outlined in the escrow Contract. If discrepancies arise, the buyer and seller may mutually agree to amend the contract; unlike a letter of credit, there are no additional fees for amendments.

3

Once the buyer and seller are agreed on the contents of the shipping document copies, the seller sends the original shipping documents to Acerium. At this point, both the buyer and seller are completely protected by Acerium, and neither party may default on its side of the transaction.

4

Acerium then simultaneously releases funds to the seller and the approved shipping documents to the buyer. This flow is similar to a letter of credit, as a supplier must submit original documents to be paid. However, escrow is much faster and cheaper than a letter of credit process, especially since the transaction only uses a single neutral counterparty rather than multiple banks.

In some cases, a buyer and a seller cannot come to an agreement on a discrepant transaction. In this case, the parties may elect to have an independent arbitration determine the settlement of the funds.

Safety and Security

Acerium's service is fully licensed and bonded, and is federally regulated by the government of the United States of America. All deposits are insured and are maintained at internationally-recognized banks. Upon registration all companies must comply with U.S. Anti-Money Laundering and KYC laws.

Benefits for Buyers
There are a variety of issues with letters of credit, cash against documents, and documentary collections. The biggest single problem, however, is that security and speed move inversely - you can have one or the other, but not both. Through our escrow solution, Acerium is able to ensure both a safe transaction and quick settlement, with lower fees than the alternatives.Below are some of the specific benefits Acerium offers to buyers around the world.
A Single Counterparty
Acerium is a sole intermediary in the transaction, and ensures that the documents flow smoothly. By eliminating time that banks spend communicating and negotiating with one another, Acerium is typically able to open a new escrow contract within hours of agreement on terms. Acerium then cuts two to four weeks of wasted time out of the transaction; the buyer can virtually always claim their goods on time, leaving everyone happier. As an additional benefit, buyers can expect lower price volatility given the shorter transaction length, which reduces their market risk exposure.
Lower Fees
Trades through Acerium cost 0.75% of the total contract value with no additional fees - less than half the average cost to open a letter of credit. Thanks to the simplicity of the transaction, a buyer using escrow will also not need to hire expensive specialists to review documents (as they might with a letter of credit).
Protection
Acerium's escrow solution protects buyers just as well as a traditional letter of credit. Even if a seller wants to alter terms, the guiding escrow Contract remains unchanged until the buyer consents. The buyer may reject updates to quantity, price, latest ship date, or specifications, and simply receive their deposited funds back from the escrow account. Since the supplier cannot unilaterally strong-arm the buyer to accept a change, they are forced to comply with the agreed-upon terms or risk losing the deal.
Benefits to Buyers
  • Money is sent only when goods are confirmed shipped and you hold the original documents
  • Removes the risk of working with new or unknown suppliers
  • Eliminates red tape to speed up purchases, reducing your exposure to market movement
  • Half the fees of your existing LCs, guaranteed
Benefits to Suppliers
  • Receive 100% cash against documents, typically paid out within hours of shipping document receipt by Acerium
  • Execute transactions without a lengthy and complicated LC process
  • A single counterparty helps cut time and confusion from the LC/documentary collections transaction flow
Benefits to Traders/Brokers
  • Execute transactions faster, with guaranteed receipt of commissions at time of shipment
  • Give your buyers peace of mind when working with new suppliers
  • Guarantee suppliers full and timely payout
  • Through our add-on Transafe product, traders use a buyer deposit to guarantee purchase from end suppliers, eliminating reliance on credit
Email or Call us today 1-646-783-9752