The Gold Standard of Payment Security
In an industry built on handshakes, the biggest risk you face shouldn’t be getting paid for the work you’ve already done. ConneXion Livestock provides a financial firewall between your ranch and the market. By utilizing licensed, third-party escrow, we ensure that every transaction is funded before the trucks arrive, giving you total peace of mind and absolute financial certainty.
How Escrow Works: The Simple Breakdown
1. The Secure Deposit
In a transaction of high-value goods, the buyer puts his money in escrow before the seller ships the goods.
This is a benefit to both the buyer and seller.
- The seller has verification that the buyer has the money to pay
- The buyer knows that his money is protected should the seller ship inferior product or fail to deliver altogether.
2. The Verification & Inspection
The seller ships the goods to the buyer. The buyer has an inspection period to ensure the goods are correct, as represented, and meeting the terms of sale. This ensures the seller delivers exactly what was promised.
Title remains in Escrow until the buyer approves the goods, ensuring a buyer cannot run with the goods without payment.
3. The Final Transfer
Following the inspection period, if all terms and conditions are met, the money is transferred to the seller and the title is officially transferred to the buyer.
Escrow Applied to Livestock
At ConneXion, we’ve tailored this process for the unique needs of ranchers. We require payment wired into the Escrow Account 1 business day before loading.
You receive a notification from the bank that the funds are secured. If the money isn't in the vault, the gate doesn't open.
The Real Truth About the Packers and Stockyards Act
Many ranchers assume the Packers and Stockyards (P&S) Act protects them. While it sounds good in theory, the reality of the "Dealer Trust" and "Bonds" often falls short when a crisis hits.
The "Cascade" Effect
With a traditional order buyer or video auction, it isn’t even your cattle or your buyer that may cause a problem. A buyer on a completely different set of cattle may fail to pay, causing a cascade of issues with the money float. This often results in sellers further down the line paying the ultimate price for someone else's default.
The Bond Trap
If a dealer goes bust, you are told to file a claim against a bond. Here is the reality of that process:
- Pennies on the Dollar: P&S bonds are often only required to cover a fraction of a dealer's total business. If a dealer owes millions but has a minimal bond, you may only receive a small percentage of what you are owed.
- The Waiting Game: Claiming funds from a bond or a dealer trust can take months or even years. Sellers often wait a long time to see any money at all, while their own operating expenses continue to mount.
ConneXion eliminates the wait. We don't trade on floats or bonds. Your money is secured in the vault before the trucks ever hit the yard—no exceptions.
There is no other firm that can guarantee payment the way that ConneXion can. Every other payment method is inferior.