Purchasing a used machine tool requires trust, which is amplified when doing so online. If you’ve ever bought or sold machine tools on the internet, you’ll be familiar with this topic. Despite the fact that there are numerous options for purchasing used machinery today, most transactions require any buyer to pay in advance, even before the machine is shipped. As a result, the buyer bears the entire transaction risk. Buyers have little recourse if any part of the transaction goes awry or if the machine fails to meet their expectations. If the seller refuses to cancel the transaction and return the money, the buyer’s only option is to go to court. And we all know how expensive this can be and how long this can take.
Our solution is the escrow payment. It is a simple solution that is widely available on the market. It is already the preferred method in the real estate market, and it works just as well in the used machinery trade. Buyers require the security that escrow payments provide. The funds are safely held in a trust account until they receive their machine on time. Sellers, on the other hand, have security. They are assured that their money has been paid and that they will receive it as soon as the buyer accepts the goods. Another advantage for sellers is that they can expect to sell their machines much faster because buyers are more confident and take less time to make purchase decisions when there is no payment risk.
Let’s have a closer look at how this works. An escrow payment always involves three parties:
- The buyer
- The seller
- The escrow agent
Once the buyer and seller have agreed on a transaction, they appoint an escrow agent. There are several escrow services on the market, and they all operate on the same principle, which is to act as the trusted party in the middle.
First step: The buyer pays the agreed purchase price into an account with the escrow agent.
Second Step: The buyer and seller manage the shipment of the machine. Then the buyer receives and accepts the machine.
Third step: The escrow agent pays the funds to the seller and the transaction is complete.
It is simple and straightforward, and it is not particularly expensive. If the machine costs more than USD25,000, the fee is usually less than 1% of the purchase price. For lower-priced items, the fee would be between 2% and 3%. It has a low administrative burden as a service and is easily accessible to anyone. The parties only need to agree on who will be responsible for paying for the service up front.
The majority of transactions are completed successfully and without incident. However, if something goes wrong, the escrow service becomes very important. They will continue to hold the funds in their trust account and will act as an honest broker for both parties. Their Internal Dispute Resolution Teams are prepared to resolve issues in a highly structured manner. They are well-trained to find fair solutions for both the buyer and the seller. Only in extreme cases, when they are unable to reach an agreement, will a formal arbitration process be initiated. For final settlement, this is handled by the American Arbitration Association, JAMS Arbitration, net-ARB.com, or other similar organizations.
We believe that escrow is a critical service for making online transactions safe and secure. MACHINIST EXCHANGE has placed escrow at the heart of our platform’s transactions in order to provide an efficient and secure transaction environment for all of our users. We have partnered with Escrow.com, and all MACHINIST EXCHANGE members can rest assured that they are protected by a licensed and audited escrow service.
MACHINIST EXCHANGE, together with Escrow.com is proud to provide:
- Unrivaled safety and security
- Simplicity process
- A fair and efficient conflict resolution process should ever a dispute arise
That’s all it takes to buy safe & secure with MACHINIST EXCHANGE . Please refer for more details on this world class service to www.machinistexchange.com or www.escrow.com or, contact firstname.lastname@example.org.