What is an escrow service?
An escrow service is an arrangement where funds are held by an independent third-party (Green Light Escrow Ltd) on behalf of the two parties to a contract. These escrowed funds are then released once both parties agree the contract’s terms have been performed.
How does Green Light’s construction escrow service work?
The tradesperson undertakes the normal quote process. Once the quote is agreed upon this can be uploaded and milestones set.
Funds for a milestone are deposited into our trust account by the client and work can commence.
Once the client confirms a milestone has been completed to the expected standard, we release this payment to the tradesperson. Funds are then deposited by the client for the next milestone and work continues!
Are the escrowed funds secure?
Our nominee company structure provides separation between any funds held on your behalf (held in an ANZ trust account) and the operations of Green Light Escrow Ltd. All your escrowed funds must remain in this trust account until they are released to either party. Green Light Escrow Ltd cannot legally use these funds for any other purposes.
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 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). Green Light Escrow complies with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 under supervision of the FMA (Financial Markets Authority).
Can a client take their funds out of escrow once work has begun?
No, we can only release funds upon both party’s approval. Funds held in escrow cannot be ‘withdrawn’ for any reason (or released to anyone else) without the other party also agreeing to it.
I have a large project, do I need to fund the whole project before work can start?
No, you can break a large contract into smaller milestones. Each milestone can then be funded individually and payments released as they are completed.
Can multiple milestones be funded and completed in any order?
Yes, multiple milestones can be funded at any one time. Each milestone can be funded, completed, and have payment released at any time.
What is the cost of Green Light’s escrow service?
Our fee is simply 1% of the funds released, up to a maximum of $100 per milestone. Our minimum fee is $5 per milestone – Fees are paid per milestone by the tradesperson, when requesting the release of funds. They can be paid securely with a credit/debit card (via Stripe). Our fees are exclusive of GST.
Do I need to be in the construction sector to use Green Light?
Any business that provides a fixed price to clients, then invoices after completing the work can use Green Light! Among our current users are mechanics, architects, a graphic designer, and a catering service