What is milestone escrow?
Milestone escrow is a payment method where your client deposits money into a secure, neutral account before work begins. The funds are held by a licensed trustee — not by you, and not by the client. When you complete a milestone and submit evidence, the client approves it, and the funds are released instantly to your account.
It's the fairest way to structure a trade job. The client knows their money is protected. You know you'll get paid for work done. Nobody has to trust anyone blindly.
How does it work in practice?
Here's a real example. You're an electrician quoting a $15,000 commercial fitout. Instead of chasing a deposit and then chasing the final payment, you set up the job in Stagex with three milestones:
- Milestone 1 — Rough-in: $5,000. Client deposits $5,000 into escrow before you start. You complete the rough-in, photograph every junction box and cable run, submit the evidence. Client approves. $5,000 hits your account.
- Milestone 2 — First fix: $5,000. Same process. No surprises.
- Milestone 3 — Commissioning: $5,000. Final photos, sign-off, payment released.
No chasing. No late payments. No disputes about what was or wasn't done.
Is milestone escrow legal in Australia?
Yes. Stagex uses a licensed Australian trustee to hold funds, which is fully compliant with Australian financial services law. The escrow agreement is a legally enforceable contract between you, your client, and the trustee.
What does it cost?
Stagex charges 1.6% of the escrowed job value, deducted when funds are released to you. On a $10,000 job, that's $160 — less than a single hour of invoice chasing time.