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Categories faq: Contract Manufacturing

How long does it take for funds to be released from escrow after the contract manufacturing agreement is fulfilled?

Once the terms of the contract are met, and the client approves the completed product, the funds will be released from escrow. The timeline may vary depending on the escrow service provider’s policies and processes, as well as any additional verification steps required. Generally, the release of funds from escrow is relatively quick, often occurring within a few business days after the completion and approval of the product. However, it’s always a good idea to check with your specific escrow provider, like Castler, for more accurate timelines.

Are there any risks associated with using escrow services in contract manufacturing?

While escrow services like Castler help minimize risks, there can still be potential issues such as disputes or delays in the manufacturing process. It is crucial to thoroughly research your contract manufacturer and have a well-drafted agreement in place to mitigate any risks.

Can Castler mediate disputes between parties in a contract manufacturing agreement?

While Castler can provide guidance and support, it is primarily an escrow service and does not have the authority to mediate disputes. However, including a dispute resolution clause in the contract and working with a neutral third party can help resolve any conflicts that may arise during the manufacturing process.

How do I initiate an escrow transaction with Castler for my contract manufacturing agreement?

To initiate an escrow transaction, you’ll need to sign up with Castler and provide the necessary information, such as the contract terms, payment details, and any specific conditions related to the manufacturing process. Once both parties agree to the terms, Castler will hold the funds in escrow until the agreed-upon conditions are met.