A paymaster is someone appointed by a group of buyers, sellers, investors or lenders to receive, hold, and dispense funds, commissions, fees, salaries or other trade, loan, or sales proceeds within the private sector or public sector.
Since 30 years we operate as a paymaster, but we are organising the sector to give our client this service worldwide.
The primary purpose of a paymaster is to receive fees in escrow by buyers in a significant transaction and disburse to the sellers and brokers on the transaction.
When dealing with commission payments on contracts dealing with large amounts of money (such as Oil, Gas, Steel, Iron, Gold, MTN's, VG's, T-Strips, and other instruments), most banks in the world are very wary of handling such large amounts of money. Also, most buyers and sellers of such transactions want to place the funds with a neutral third party for disbursement. In most cases, the buyer and the seller involved in the transaction require a paymaster be named to handle all incoming and outgoing funds.
A paymaster is a neutral third party and does not know any particulars of the transaction. They handle the incoming commissions and then disburses the funds accordingly. In return for their services, the paymaster charges a small fee, which is paid directly to them out of the commission proceeds before disbursement.