Frequently Asked Questions
Once the cost of a project is agreed upon, the Tradesperson invoices their client before they start work – this payment is then deposited into our trust account. As soon as the job is completed and the Client is happy, we release the payment immediately!
Green Light Escrow Ltd is a Registered Financial Service Provider (FSP) under the Financial Services Providers (Registration and Dispute Resolution) Act 2008. [FSP number: FSP661811].
We are an AML/CFT reporting entity under supervision of the FMA (Financial Markets Authority) in compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 – and are subject to annual reporting and reviews of our Risk Assessment & Compliance Programme, ongoing due diligence processes, and external audits.
We can legally hold escrowed funds in our trustee’s account for any transaction (both goods and services) in any industry, for both personal and business purposes. However, we cater primarily to construction in New Zealand, due to both demand and expertise in this sector.
Our nominee company structure provides separation between any escrowed funds (held in the trustee’s ANZ account) and the operations of Green Light Escrow Ltd. Funds held in escrow are protected from liquidation or any other legal proceedings against Green Light Escrow Ltd through this structure.
All of your escrowed funds must remain in the trustee’s account as per our Bare Trust deed and ANZ agreement. Your funds cannot be removed from the trustee’s account for any purpose other than the release of an agreed upon amount. To protect from fraud or error, the release of funds is performed by automated batch payments through ANZ with three-party authorisation required for all transfers.
Our fee is simply 1% of funds released from escrow, with a maximum fee of $100 and minimum of $5 per release (milestone).
Fees are paid by the tradesperson (with a debit/credit card via Stripe) when requesting the release of funds.
All of our associated costs are built into this fee – there are no other fees with using the service.
You can your ‘individual’ account for business as a sole trader, but if you are trading as a registered company you will need to add a company account within your profile. If you are a trust or limited partnership, please contact us and we will setup this account for you.
Yes, we hold all retentions in trust, in compliance with the recent Construction Contracts (Retention Money) Amendment Act 2023.
As a Registered Financial Service Provider, we must confirm your identity before we are able to release any payment. We use APLYiD to do this, you will need your driver license/passport and smartphone and it should only take a couple of minutes.
You are able to send invoices and accept jobs before getting verified, but you will need complete this before you can deposit or receive funds from the trustee’s account.
We can only release funds upon agreement from both parties. The parties have the right to pursue any dispute resolution process at any time, and we will release funds when obligated to do by so by determination, order, or judgment.
If you have a complaint regarding our service, we are a member of an independent dispute resolution and Financial Ombudsmen scheme, approved by the Ministry of Consumer Affairs and operated by FSCL (Financial Services Complaints Limited).