Definition
B2B Escrow
A secure payment arrangement for business-to-business transactions where funds are held by a neutral third party (GuardPe) and released in milestones as each deliverable is approved by the client.
Benefits for Both Parties
B2B escrow protects vendors and clients equally.
For Clients (Buyers)
- Only pay for approved deliverables
- Full refund if vendor fails to deliver
- Build vendor accountability
- Transparent project tracking
For Vendors (Sellers)
- Payment released on approval for each milestone
- Don't risk large amounts of unpaid work
- Build client trust through transparency
- Instant payment upon approval
How B2B Escrow Works
Structured milestone payments for business contracts:
- 1
Define project milestones
Break your project into clear deliverables with agreed payment amounts for each milestone.
- 2
Client funds first milestone
Client pays the first milestone amount into escrow before work begins.
- 3
Deliver and get approved
Complete the milestone work and submit proof. Client reviews and approves.
- 4
Payment releases instantly
Upon approval, milestone payment releases to your account. Repeat for each phase.
Common B2B Escrow Use Cases
Software Development
App development, website builds, API integrations
IT Consulting
Technical audits, architecture planning, team augmentation
Marketing Services
Campaign management, SEO, content production
Manufacturing
Product prototyping, bulk orders, quality inspection
Why Businesses Trust GuardPe
RBI-compliant
Fully legal under Indian law
Evidence-based
Decisions backed by proof
Fast settlement
Payments within hours of approval
Frequently Asked Questions
How does B2B escrow work?↓
B2B escrow through GuardPe allows businesses to structure payments in milestones. Each milestone has an agreed deliverable and payment amount. The client funds each milestone before work begins. Upon approval of deliverables, payment releases to the vendor. If deliverables aren't met, disputes are resolved fairly.
What types of B2B contracts work with escrow?↓
Escrow works for any B2B transaction with defined deliverables: software development, consulting, marketing services, manufacturing, staffing, event management, and more. The key is having clear milestones that both parties agree on.
How are disputes handled in B2B contracts?↓
When a dispute arises, both parties submit evidence through GuardPe. Our team reviews the agreed deliverables, communication history, and submitted work. We issue fair resolutions — partial payment for partial work, full payment for complete work, or refund for non-delivery.
Can we customize milestone amounts?↓
Yes. Milestone amounts are completely flexible and agreed upon by both parties. Some clients prefer 50% upfront, 50% on completion. Others prefer smaller, frequent milestones. GuardPe supports any milestone structure.
Is B2B escrow legally binding?↓
GuardPe uses Cashfree Payments, an RBI-licensed payment aggregator, to hold funds. The escrow arrangement is documented and can serve as evidence in legal proceedings if needed.
What are the fees for B2B escrow?↓
B2B escrow uses the same pricing: 2% for amounts above ₹50,000, 3% for ₹10,000–₹50,000, 5% for under ₹10,000. Plus 18% GST. Fees can be split between parties or paid by one party as agreed.