Saturday, June 19News That Matters

UK Advice Needed – Legal Process exchanging funds and website over

Hi,

Just coming here for some help as I'm not sure what to do. I made an offer to buy a business on flippa.com – the business is a UK registered business, and I am a UK buyer.

The usual process for transferring ownership and funds over through Flippa, is to go through their recommended provider Escrow, where I transfer the funds over to Escrow, they hold the funds while the website is then transferred over to me, to ensure that both parties are protected.

It has been around a week now since I purchased the website and I've had all sorts of issues because of the fact that Flippa and Escrow operates on USA terms. Escrow won't accept a standard international bank transfer from the UK – they only accept payments through ABA wire transfer, but both of my banking providers do not support this payment option.

The seller has been in touch with me via linkedin to suggest cutting Escrow out completely (as they will take a 10% of the funds). It makes sense to deal with him directly and cut out Escrow as everything is done through USD too – so it is costing extra with the conversion rates even though both business currencies are in GBP .

I wondered if anyone had any advice on how I could cover myself legally, as one party needs to trust the other (whoever decides to go first – either he transfers us the website first or we make payment first) – if I make payment first I just wanted to find out if anyone had any advice/if a basic contract would hold up? For example, if I detailed the process of how the business transfer would take place, get him to sign it – would that be enough if he didn't meet his end of the deal?

Any advice would be appreciated! Or any recommendations of an UK based Escrow alternative!?

Thanks

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