Castler closes Pre-Series A funding of $6 Million led by Flipkart, Capital 2B, IIFL Fintech Fund, Venture Catalysts & Zerodha

Categories faq: Co-lending

How does Castler’s supply chain financing solution work with escrow?

Castler’s supply chain financing solution utilizes escrow to manage payments between buyers and suppliers. When a buyer approves an invoice, the funds are transferred to an escrow account managed by Castler. Once the agreed-upon conditions are met, the funds are released to the supplier, ensuring timely and secure transactions.

What is escrow in the context of supply chain financing?

Escrow is a financial arrangement where a neutral third party, like Castler, holds and regulates funds involved in a transaction between two parties, such as supply chain financing. It ensures that the funds are released only when specific conditions are met, providing security for both the buyer and the supplier.