TradeSafe

How It Works

I am the Buyer

Joe finally found his dream car, a vintage Ferrari 512 Testarossa, for sale in a local car magazine. Joe is a little scared. He doesn't know the owner at all and he doesn't know if there may be issues with the vehicle.  

  1. Joe registers a TradeSafe account (he will only need to do this once). He provides the following information:

    • His mobile number – TradeSafe uses OTP (One Time Pin) validation during specific aspects of a trade to provide additional security measures as well as important trade notifications.
    • His ID number – TradeSafe is compelled by South Africa’s Financial Intelligence Centre Act 38 of 2001 (FICA) to verify the identity of the buyer. The purpose of FICA is to assist in the identification of the proceeds of unlawful activity and to combat money laundering activities as well as the financing of terrorism and related activities.
    • His banking account details. But wait, isn't Joe the buyer? Yes, but if the Ferrari turns out to have an Opel engine, then Joe will need to be refunded. Joe's details will be verified with his bank to determine whether the account holder is indeed Joe.
    • If Joe runs a business and does high value deals on a day-to-day basis, particularly in the fuel and commodity sectors, TradeSafe may perform additional anti-money laundering procedures such as company verifications, industry license verification and possible site visits.  

  2. Joe now obtains the seller's email address, provides him some information on TradeSafe (refers him to our website) and informs that he would like to do the transaction through the TradeSafe system.

  3. Joe now creates the transaction on the system and specifies the transaction terms such as the price, delivery terms, specifications of the vehicle, inspection periods etc. Where applicable, contracts, pictures and other documentation can also be uploaded to the transaction. Once Joe is happy, he submits the transaction. TradeSafe will then automatically send the other party a trade invitation, which will include the details of the transaction and what to do next.

  4. The seller receives the trade invitation and likes what he sees. He creates a TradeSafe account, following the same procedure as Joe. He then immediately sees the transaction which was created by Joe. The seller can now either accept the trade terms or negotiate. The trade terms and details can be negotiated an infinite amount of times until both parties are in agreement.

  5. Once the terms have been agreed, the transaction and the documentation are locked. Joe now empties his life savings and deposits the funds with TradeSafe via EFT. If payment is being made by any of South Africa's top four banks, payment from the buyer to the TradeSafe will be verified almost instantaneously. TradeSafe will notify the Seller once the funds have been verified and cleared. TradeSafe will also send all parties a signed letter of confirmation that the funds have been received and are being safeguarded in escrow. The seller is relieved, knowing that Joe has got the funds and not wasting his time. TradeSafe will send an email and sms notification to all parties during each stage of the transaction process. 

  6. The seller now dispatches the Ferrari to Joe. Knowing that the money in the middle, the seller is incentivised to work fast as he will be paid immediately as soon as Joe accepts the Ferrari. There is an option for the seller to provide the tracking number of his/her preferred courier service which allows TradeSafe and Joe to monitor delivery progress if a professional courier service was used.

  7. The parties have a pre-agreed time period to deliver and inspect the Ferrari. This end of this period is known as the Expected Completion Date. If the seller has met all the obligations and Joe is in agreement, Joe accepts the goods or services and TradeSafe releases the funds to the seller.

  8. But Oh No! The Ferrari delivered to Joe is yellow, and not the beautiful Marlboro Red which was advertised. Joe is not happy and logs into TradeSafe to see the options available to him. Joe sees that he can either renegotiate certain terms of the deal, request an extension to the delivery and inspection periods or lodge a dispute. Not in the mood for a dispute, Joe decides to renegotiate. "The 512 is yellow and not red as promised" Joe comments on TradeSafe. "I will accept it if you take R100k off the purchase price". The parties can renegotiate the terms of the trade until a conclusion has been reached. If the seller accepts the buyer's proposal, TradeSafe will pay the seller the purchase price less the R100k that will be refunded to Joe.

  9. Joe also needs to act. He needs to tell TradeSafe that he has accepted the vintage Ferrari. If Joe decides to take the Ferrari for a joy-ride to the fair Cape, ignores the Expected Completion Date and fails to inform TradeSafe of the acceptance/rejection, TradeSafe, as a last resort, may treat the inaction on Joe's part as a deemed acceptance. This protects the seller. The deemed acceptance authorises TradeSafe to release the funds to the seller.  

  10. If Joe indeed receives the Ferrari with an Opel engine inside, he can lodge a dispute. The trade will be frozen, and the parties will have 21 business days to resolve the dispute. If the parties cannot resolve the dispute, they may elect a legal resolution process which may include arbitration.

  11. Happy riding Joe!

I am the Seller

Joe is a plumber and is called out by Ben to fix a geyser that has burst. He is worried because on numerous occasions he has not been paid for previous work performed. Unsure if this may happen again, he decides to give TradeSafe a go.

  1. Joe registers a TradeSafe account (he will only need to do this once). He provides the following information.

    • His mobile number - TradeSafe uses OTP (One Time Pin) validation during specific aspects of a trade to provide additional security measures as well as important trade notifications.
    • His ID number - TradeSafe is compelled by South Africa's Financial Intelligence Centre Act 38 of 2001 (FICA) to verify the identity of the parties. The purpose of FICA is to assist in the identification of the proceeds of unlawful activity and to combat money laundering activities as well as the financing of terrorism and related activities.
    • His banking account details. Joe needs to be paid. Joe's details will be verified with his bank to determine whether the account holder is indeed Joe.
    • If Joe runs a business and does high value deals on a day-to-day basis, particularly in the fuel and commodity sectors, TradeSafe may perform additional anti-money laundering procedures such as company verifications, industry license verification and possible site visits.

  2. Joe now obtains Ben's email address, provides him some information on TradeSafe (refers him to our website) and informs Ben that he would like to do the transaction through the TradeSafe system.

  3. Joe now creates the transaction on the system and specifies the transaction terms (Joe specifies how long it will take, what the cost will be and how long Ben has to inspect his new geyser). Joe can also upload photos of previous geyser installations that he has installed. Once Joe is happy, he submits the transaction. TradeSafe will then automatically send the other party a trade invitation, which will include the details of the transaction and what to do next

  4. Ben receives the trade invitation and likes what he sees. He creates a TradeSafe account, following the same procedure as Joe. He then immediately sees the transaction which was created by Joe. Ben can now either accept the trade terms or negotiate. The trade terms and details can be negotiated an infinite amount of times until both parties are in agreement.

  5. Once the terms have been agreed, the transaction and the documentation are locked. Ben deposits the funds with TradeSafe via EFT. If payment is being made by any of South Africa's top four banks, payment from the buyer to the TradeSafe will be verified almost instantaneously. TradeSafe will notify the Seller once the funds have been verified and cleared. TradeSafe will also send all parties a signed letter of confirmation that the funds have been received and are being safeguarded in escrow. Ben is relieved, knowing that the money is in the middle and that he will get the service that he paid for. TradeSafe will send an email and sms notification to all parties during each stage of the transaction process.

  6. Joe now initiates providing the service to Ben. Knowing that the money in the middle, Joe is incentivised to work fast and to get the job done in a high-quality standard as Joe will be paid immediately once Ben accepts the geyser installation. If Joe was selling a product rather than a service, he would have the opportunity to provide the tracking number of his/her preferred courier service which will allow TradeSafe and Ben to monitor delivery progress if a professional courier service was used.

  7. The parties have a pre-agreed time period to deliver and inspect the service. This end of this period is known as the Expected Completion Date. If Joe has met all the obligations and Ben is in agreement, Ben accepts the service and TradeSafe releases the funds to Joe.

  8. Oopsy Daisy. Joe forgets to install a tiny energy-saving device. This would save Ben R100 a month in energy saving costs. Ben notices and decides to log into TradeSafe to see the options available to him. Ben sees that he can either renegotiate certain terms of the deal, request an extension to the delivery and inspection periods or lodge a dispute. Not in the mood for a dispute, Ben decides to renegotiate. "Um, you forgot to install the energy saving device" Ben comments on TradeSafe. "I will give you an option, either come back and install it and receive the full price or leave it and reduce the price by R500". The parties can renegotiate the terms of the trade until a conclusion has been reached. If the seller accepts the buyer's proposal to not install the device, then TradeSafe will pay the seller the purchase price less the R500 which will be refunded to Ben.

  9. Ben also needs to act. He needs to tell TradeSafe that he has accepted the geyser installation. If the Expected Completion Date comes and goes, and Ben fails to inform TradeSafe that he is either accepting or disputing the installation, TradeSafe, as a last resort, may treat the inaction on Ben's part as a deemed acceptance. This protects Joe. The deemed acceptance authorises TradeSafe to release the funds to the seller.

  10. If the geyser gives way and floods Ben's house, then Ben may initiate a dispute. The trade will be frozen, and the parties will have 21 business days to resolve the dispute. If the parties cannot resolve the dispute, they may elect a legal resolution process which may include arbitration.

  11. Happy plumbing Joe!

I am an Agent

Joe acts as a broker/intermediary in the local commodity sector. He is pretty good hooking up buyers and sellers when it comes to big-ticket chrome transactions. A lucrative deal has come up, however the deal involves a lawyer, a consultant and a delivery company, who also require payment. Joe is unsure how to manage a transaction with so many transacting parties. Moreover, Joe is unsure how everyone will be paid and who will act as paymaster. With TradeSafe, Joe can act as an agent, and add as many beneficiaries to the transaction he so desires. 

  1. Joe structures the deal, arranges the necessary documentation and contracts, and informs all the parties that the transaction will be facilitated on the TradeSafe system.     

  2. Joe registers a TradeSafe account (he will only need to do this once). He provides the following information.
    • Joe’s full company name and registration number;
    • Proof of business registration and incorporation;
    • If applicable, any agency or wholesale licenses dependent on the sector
    • Joe's ID number - TradeSafe is compelled by South Africa's Financial Intelligence Centre Act 38 of 2001 (FICA) to verify the identity of the parties. The purpose of FICA is to assist in the identification of the proceeds of unlawful activity and to combat money laundering activities as well as the financing of terrorism and related activities.
    • His banking account details. Joe needs to be paid. Joe's details will be verified with his bank to determine whether the account holder is indeed Joe.
    • TradeSafe may perform additional anti-money laundering procedures such as possible site visits in order to ascertain whether the transaction has economic substance.

  3. Joe then creates the transaction on the TradeSafe system. He specifies the terms of the transaction and the email addresses of all the transacting parties. Joe also specifies who will be responsible for payment of the escrow fee, the agent fee, the lawyer's fee, the delivery company's fee and the consultant's fee. Any fee can be paid by either the buyer, the seller, the agent, a 50/50 split between the buyer and the seller, or a three-way split between the buyer, the seller and the agent. Documentation such as Sales/Purchase Agreements, Invoices and Escrow Agreements can be upload to the transaction. Joe reviews the tranasction he has created and submits it on the TradeSafe system. TradeSafe will then automatically send all parties a trade invitation, which will include the details of the transaction and what to do next.

  4. All transacting parties receive a trade invitation. They proceed in creating a TradeSafe account, following the same procedure as Joe. Once all parties have created an account, they can interact with the transaction which was created by Joe. If any party is unhappy with the terms of the deal, they can use TradeSafe's handy negotiation and chat tool to negotiate terms that is favourable for all parties. Only once all parties have agreed to the terms will the system instruct the buyer to deposit the funds.

  5. Once the terms have been agreed, the transaction and the documentation are locked. The buyer then deposits the funds with TradeSafe via EFT. If payment is being made by any of South Africa's top four banks, payment from the buyer to the TradeSafe will be verified almost instantaneously. TradeSafe will notify all the parties once the funds have been verified and cleared. TradeSafe will also send all parties a signed letter of confirmation that the funds have been received and are being safeguarded in escrow. This letter can be provided to financiers or other transaction stakeholders who so requires it. TradeSafe will send an email and sms notification to all parties during each stage of the transaction process.

  6. The supplier now initiates providing the chrome to the buyer in accordance with the terms of the transaction. Any additional documentation, such as a bill of lading, can be uploaded to the transaction at this stage.

  7. The buying party has pre-agreed time period to deliver and inspect the chrome. This end of this period is known as the Expected Completion Date. If the selling party has met all the obligations and the buyer is in agreement, the buyer accepts the Chrome on the TradeSafe system. This authorises TradeSafe to release the funds to all the transacting parties including Joe.

  8. If any problems arise, be it big or small, the buyer has the option of either renegotiating the terms of the trade, requesting an extension to the delivery and inspection periods, or initiating a dispute. This may result in a full or partial refund to the buying party. If the buyer initiates a dispute, the trade will be frozen, and the parties will have 21 business days to resolve the dispute on the TradeSafe system. If the parties cannot resolve the dispute, they may elect a legal resolution process which may include arbitration.

  9. Joe the dealmaker!

Progress Payments

Joe is a supplier of diesel. He is seasoned and is aware of the number of nefarious individuals in the industry. He decides to use an escrow service like TradeSafe, but his one concern is that parties must be able to split up a single transaction into a number of milestones or progress payments. This is important in the fuel industry as a typical transaction comprises a number of loads, sometimes up to 10 loads a day. Joe does not want to deal with administration of creating a separate transaction for each load. Enter TradeSafe. TradeSafe can be used where milestone or progress payments need to be performed, be it in the construction, commodities or project services sectors etc.

  1. Joe structures the deal, arranges the necessary documentation and contracts such pro-forma invoices, fuel upliftment schedules etc. and informs all the parties that the transaction will be facilitated on the TradeSafe system.

  2. Joe registers a TradeSafe account (he will only need to do this once). He provides the following information:
    • Joe’s full company name and registration number;
    • Proof of business registration and incorporation;
    • If applicable, any agency or wholesale licenses dependent on the sector
    • Joe's ID number - TradeSafe is compelled by South Africa's Financial Intelligence Centre Act 38 of 2001 (FICA) to verify the identity of the parties. The purpose of FICA is to assist in the identification of the proceeds of unlawful activity and to combat money laundering activities as well as the financing of terrorism and related activities.
    • His banking account details. Joe needs to be paid. Joe's details will be verified with his bank to determine whether the account holder is indeed Joe.
    • TradeSafe may perform additional anti-money laundering procedures such as possible site visits in order to ascertain whether the transaction has economic substance.

  3. Joe then creates the transaction on the TradeSafe system. He specifies the terms of the transaction and the email addresses of all the transacting parties. Joe also specifies who will be responsible for payment of the escrow fee. On the milestone tab, Joe structures the transaction into the separate loads, allocating an amount as well as the trigger release point to each load. Once all loads have been allocated and the sum of the loads agrees to transaction value, Joe reviews the transaction he has created and submits it on the TradeSafe system. TradeSafe will then automatically send the other party/s a trade invitation, which will include the details of the transaction and what to do next.

  4. The buyer receives a trade invitation. They proceed in creating a TradeSafe account, following the same procedure as Joe. They can then interact with the transaction which was created by Joe. If the buyer is unhappy with the terms of a particular load, or anything pertaining to the transaction in general, he can use TradeSafe's handy negotiation and chat tool to negotiate terms that is favourable for all parties. Only once all parties have agreed to the terms will the system instruct the buyer to deposit the funds.

  5. Once the terms have been agreed, the transaction and the documentation are locked. The buyer then deposits the funds with TradeSafe via EFT. If payment is being made by any of South Africa's top four banks, payment from the buyer to the TradeSafe will be verified almost instantaneously. TradeSafe will notify all the parties once the funds have been verified and cleared. TradeSafe will also send all parties a signed letter of confirmation that the funds have been received and are being safeguarded in escrow. This letter can be provided to financiers or other transaction stakeholders who so requires it. TradeSafe will send an email and sms notification to all parties during each stage of the transaction process.

  6. Joe begins delivery of the fuel to the buyer. On the system, he ticks off each load as the fuel truck leaves the yard. This notifies the buyer that Joe has begun delivery of a specific load. Joe can also upload documentation to each load at this stage i.e. load codes, bill of lading, tracking information etc.

  7. The parties have a pre-agreed time period to deliver and inspect the fuel. This end of this period is known as the Expected Completion Date. If Joe has met all the obligations with delivery and the buyer is in agreement, the buyer accepts the delivery on the system which authorises TradeSafe to release the funds, allocated to that particular load, to Joe. This carries on until all loads have been completed and all the funds held in escrow are disbursed. 

  8. The buyer notices that the overs-and-unders (recoveries) for load 3 were way outside the variance threshold levels. He logs into TradeSafe to see the options available to him. The buyer sees that he can either renegotiate certain terms of the load, request an extension to the delivery and inspection periods or lodge a dispute. Not in the mood for a dispute, the buyer decides to renegotiate. "I did not recover what I should have for load 3" Ben comments on TradeSafe. "Could we reduce the payment for this load by R10,000. Please find proof of levels attached". The parties can renegotiate the terms of the load until a conclusion has been reached. If Joe accepts the buyer's proposal, then TradeSafe will pay Joe the load amount less the R10,000 which will be refunded to the buyer.

  9. Both Joe and Ben have pre-agreed the period to carry out the services which is known as the Expected Completion Date. If Joe has met all the obligations and Ben is happy with the work done, Ben will log onto the system to let TradeSafe know that he is satisfied and TradeSafe will only then release the funds to Joe.

  10. If the fuel delivered was petroleum, instead of diesel, and all renegotiations fail, then the buyer may initiate a dispute. The trade will be frozen, and the parties will have 21 business days to resolve the dispute. If the parties cannot resolve the dispute, they may elect a legal resolution process which may include arbitration.

  11. Glug Glug Joe!

 

We recommend you visit our Frequently Asked Questions for further information. Or if you want to know more, refer to our Terms of Use. TradeSafe is designed to minimise fraud and protect both the Buyer and the Seller. Once you have registered on the site, you are ready to trade...it's that easy!

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