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Vertecto Help - Confirm Buyer Funded Project Escrow

Confirm The Buyer Has Funded The Project Escrow

Even though a Buyer and Seller have created a Project escrow on the Vertecto Transaction System (the "TPS"), this does not mean that the Buyer has funded the escrow. Some reasons for why this occurs and how to avoid delays are discussed here. As a Seller, you should never allow a Buyer to send calls to your routes or use your other services until the Project escrow has been funded.

The TPS will send you an email when the Project is created. It wil also send you an email when the Project escrow has been funded by the Buyer. You can also check whether a Project is an "Unfunded Project" (the Buyer has not funded the escrow) or a "Funded Project" (the escrow has been funded) by checking the Project status. You can do this at any time by using your mouse to click on the Project name on your Dashboard or by navigating to the "Project" section of the TPS. Navigate there by pressing "Projects" on the main (red) navigation bar.

An Unfunded Project looks like this:

Note that (1) in this graphic is the Project ID by which we identify the Project. The project is listed in the "Unfunded Project" table and the funding status (labeled as ((2) in the graphic) is "Pending". Pending means that the Project escrow is not funded.

A Funded Project looks like this:

Note that the Project appears in the "Funded Project" table and that it is not designated as "Pending"

Why Isn't The Escrow Always Funded When The Project Is Created?

Project escrows are funded at the same time they are created if the Buyer has more funds in its TPS account than are required to fund the escrow. However, sometimes a Buyer and Seller will create a Project before the Buyer has sufficient funds in its account. There are two frequent reasons for this.

First, the Buyer may choose to not deposit funds until after the Project is created. This approach is a standard business practice.

Second, the Buyer may have substantial sums in its account, but those funds may not be in the Project currency. The Buyer may be a French company that makes TPS deposits in Euros or the Buyer may have received payments from another transaction in in Hong Kong dollars. It is also possible that the Buyer moved its USA dollar deposits to UK Pounds to take advantage of fluctuations in the currency markets.

The quickest and most efficient approach to funding escrows is used by frequent users of telecom escrows. These frequent users keep extra funds in their accounts on the Vertecto Transaction System (the "TPS"). This allows them to create and fund escrows instantly when they find a great route to buy. Even if the Buyer's money is not in the correct currency (eg, the Project is created in USA dollars, but the Buyer's funds are in Euro) the Buyer can convert its Euros to USA dollars and dedicate it to the Project almost instantly, thereby allowing the parties to pass call traffic quickly, secure in the knowledge that they are protected up to the net amount of the Project escrow.