Tailored Escrow
Digital Letter of Credit
Digitalised Fiduciary Services
Inceptum Capital
As a Swiss trust company, we safeguard international transactions through secure escrow solutions. By uniting Swiss fiduciary tradition with modern fintech, we ensure neutrality, efficiency, and trust in global trade.
Dr. iur. Andreas Meier LL.M.
CEO of Inceptum Capital AG
Attorney-at-Law - Notary Public
In today’s global marketplace, international transactions often require the security of an escrow arrangement to protect both buyers and sellers. Escrow accounts ensure that goods or services are delivered as promised and that payments are released only when all contractual obligations have been met.
At Inceptum Capital, we provide peace of mind to all parties by securing funds in escrow accounts with leading Swiss banks — internationally recognized for their stability and discretion. Acting as a trusted, independent third party, we guarantee that funds are held safely and released strictly in line with the irrevocable terms of the agreement.
Here’s how it works: A buyer defines the terms of the transaction and, once the seller accepts, Inceptum Capital prepares the escrow agreement for both parties’ approval. The buyer then deposits the funds into the escrow account, where they remain fully protected until the seller has fulfilled their obligations. Upon successful delivery of goods or services, we promptly release payment to the seller. This process eliminates uncertainty, builds trust, and facilitates smoother cross-border trade.
Inceptum Capital is managed by Swiss attorneys and notaries public, and operates under the supervision of the Financial Services Standards
Association (VQF), officially recognized by FINMA. Our clients can rely on the integrity of Swiss legal expertise and the security of one of the world’s most respected financial systems.
LC Market
One of the most common trade finance tools is the analogue Letter of Credit (LC). LCs are letters issued by a crediting party (most typically banks) that serves as a guarantee for payment from a buyer to a seller. Letters of credit, however, are antiquated, slow, costly, complicated and lack flexibility. For established trade businesses, this has a cumbersome effect on business operations.
The current LC systems are inconsistent, outdated, and expensive. Amongst the international trade community, there is a loud call for a simplified, lower cost solution.
Inceptum Capital is addressing the demand for a secure ecosystem for buyers, suppliers and forwarders enabling them to transact trades of any size and regardless of the origin of the participants in a trusted and innovative environment at competitive costs.
The Inceptum Capital Digital Letter of Credit platform, powered by the Linux Foundation’s HyperLedger smart contracts, will allow users to easily and seamlessly complete what would otherwise be complicated, out of reach trade processes. Through the integration of blockchain technology on a unified platform, Inceptum Capital provides flawless security, and an immutable trust that the community yearns for.
THE PROBLEM – Traditional LC
The Letter of Credit is a business contract between a buyer’s creditor and a seller that guarantees payment to the seller when the agreed upon goods are delivered.
Traditional LC application processes are thoroughly regulated and require significant effort to get approval.
While, in the past, these processes served a crucial function for ensuring trust for early international trade, there has since been little innovation. The ICC 2018 report indicates that this lack of innovation has led to significant demand for better processes and costs.
There are four key problem areas where traditional LCs are failing trade markets:
Speed
Analogue LCs include an inefficient and time consuming procedure involving several steps of collection, verification and validation of documents throughout the whole processing time of the instrument. Any eventual deficiencies or amendments result in further delays or might even render the credit invalid. Including settlement of payments an overall processing time of 3 weeks is common practice. These processing times make Air, Truck, Rail, and Express shipping options entirely infeasible for analogue LC use.
Ease of use
Currently, LC processes are nuanced, and difficult to navigate. LCs usually are subject to the ICC’s UCP600 rules, which demand intensive accuracy. However, common practices and forms differ from issuer to issuer and do not reflect the needs of the individual transaction or its parties. In fact, an average of 58% of LC applications were rejected on first presentation as stated in a 2005 report, with that average increasing over time. This is a result of the manual, inflexible processes currently in use by banks and credit institutions. Additionally, if a supply vendor requires partial fulfilment from two suppliers, a way to split the LC does not exist. For all separate suppliers involved in the same trade, an entirely new LC must be applied for and processed.
Trust & Transparency
Due to a lack of transparency and inconsistent fee structures trust in banks has steadily been declining. Customer trust suffers from possible deficiencies, human error and the uncertainty if the obliged bank does actually pay.
Cost
Baseline LC costs can range from 1% to 2% for larger volumes and go up to 5% for small contract values due to the fixed costs for any transaction. The range is dependent on the size of trade, but costs are inconsistent from country to country and among institutions. Any changes to the original LC result also in additional amendment costs which further increase the overall costs.
THE SOLUTION – DIGITAL LC
Real-time processing and direct integration of service providers enables buyers and sellers to set up, adjust and execute LC agreements with greater speed and lower risk. Inceptum Capital offers an easy to use unified solution.
One unifying Platform for a global community. Distributing global access to buyers, sellers, facilitators, service providers and governments will enable greater trade opportunities.
Real time processing for all stakeholders enables coverage of all modes of transport. Entering terms into a Smart Contract, depositing funds into Inceptum Capital’s escrow account and processing as well as storing every transaction on the blockchain will secure transparency during the entire process and guarantee trust between buyer and seller. Inceptum Capital simplifies the application process and makes it easy to perform mutual adjustments by all stakeholders involved.
Digital Letter of Credit: One unifying platform that directly integrates key service partner with a check of a box.
INCEPTUM CAPITAL PLATFORM
Powered by smart contracts, and integrated with trade finance service providers, the Inceptum Capital Platform is a one-stop-shop for global buyers and sellers.
Uniform & Easy-to-Use
The Inceptum Capital platform combines the power and flexibility of smart contracts, regulatory thoroughness of the UCP600 guidelines, and the convenience of instant-access to trade finance service providers. The platform’s user interface is intuitive, ensuring users follow all application steps easily and thoroughly. To move forward with each step, users must enter key LC details and information. If there is missing information, users will be required to fill it in before moving to the next step in the application process. This guarantees that all LC applicants successfully submit their LC application on first presentation.
Digital Letter of Credit
Hyperledger Fabric is a Blockchain solution originally developed by the Linux Foundation for enterprise, multi- use business applications. With all trade details programmed into smart-contract logic, multiple third parties are no longer necessary. Combined with our front-end client portal, all aspects are simplified into one, secure platform. The digital LC is the core of the Inceptum Capital Platform. It enables fair access to international buyers and sellers through unified requirements, and consistent pricing. Adjustments can be processed simply, immediately, and are reflected to all parties simultaneously.
Service Integration
Services like insurance, quality control, and factoring are integrated directly via the Inceptum Capital Platform. Inceptum Capital assures equal and transparent conditions for all stakeholders, while also eliminating error. Offering digital letters of credit through the Inceptum Capital Platform dramatically decreases the processing time and cost for buyers and sellers. Inceptum Capital expands the LC model beyond current market applications, enabling time-sensitive trades.
The Inceptum Capital Platform unites all trade stakeholders in one place, at the same time. Buyers, sellers, facilitators and governments are now able to issue and process digital letters of credit, issued in the form of smart contracts on the Inceptum Capital Platform. Having a digital location for buyers and sellers to meet and transact is game-changing. Throughout the trade process, updates can be made in real time on the platform. This means that opportunity cost risk caused by error and delay is minimized.
Stronghold Switzerland
Inceptum Capital’s Platform will operate solely in Switzerland. All platform users will have a place where they are subject to consistent regulation, data protection standards, legislation, and escrow terms.
Regulations & KYC
Inceptum Capital is a member of The Financial Services Standards Association (VQF), which holds the function of an official, FINMA-recognised Self-Regulatory Organisation (SRO) pursuant to the Anti-Money Laundering Act (AMLA) since 1998. In the financial sector, onboarding new clients as a regulated company is very complex. Verifying the identities and financials of our prospective clients are vital and compulsory to ensure compliance with AML (Anti-Money Laundering) legislation and Customer Due Diligence (DCC) requirements. Conducting ongoing KYC checks ensures the continued good standing of our clientele.
Legal & Jurisdiction
To avoid legal misinterpretations, all platform users will “meet” virtually in Switzerland on the Inceptum Capital platform. This means that the transactions will be governed entirely by Swiss law, avoiding confusion between buyer and seller. Swiss regulatory compliance is among the most thorough in the world. Switzerland meets its commitments to WTO and bi-lateral agreements, ensuring that all trades will be assessed and executed fairly.
Banking
All escrow is executed within Switzerland by partnered escrow service providers. Their escrow gateways are built directly into the platform, providing enhanced transparency and accessibility. Traders can rest assured that they are receiving favorable terms, and that payment will be fulfilled accurately and on time.
DATA Security
While Switzerland is not a part of the EU, data security is one of Inceptum Capital’s highest priorities. Inceptum Capital’s servers are located within Switzerland, and Inceptum Capital follows the GDPR standard for data privacy and protection. They are secured, and the best practices are in place for physical access. For instance, the servers are locked away, and under constant surveillance. Should maintenance or direct access be required, personnel (in-house or external) must go through Inceptum Capital’s standard access procedures. Personnel have thorough background checks run, including but not limited to; police checks, company background verification, submission of letters of employment, and reference checks.