Escrow is a contractual payment method that includes the involvement of an agent along with the other two parties, who safeguards the money as a trustee and helps to crack a secured deal between the buyer and seller.
In this method the dealing amount is deposited to the escrow agent who releases the sum after both the buyer and seller fulfills the stipulated clauses.
Benefits of the buyer from escrow payment
When you are a buyer through the escrow services, you have the surety that your money won’t be released until the item you are receiving is as per described in the contract.
In such circumstances, if your seller is not sending you products that are up to the mark, your money won’t be hampered. So, as a buyer your money is safe to the escrow agent.
Benefits of the seller from escrow account
As a seller you know that your amount is already deposited to escrow.
So, if you have faith in your services, and if you are maintaining all the clauses, then you have the assurity that the escrow agent will release your amount and you will stay out of fraudsters.
How does a Escrow work?
When a deal includes a huge amount of payment submission, it becomes riskier to the seller in terms of receiving the amount.
For the buyer the risk is in the section of quality and quantity. But when you make the deal through an escrow agent, your payment risks are least as the escrow payment providing services are backed by state-of-the-art security.
Both the parties go through some online verifications that enable the parties to trust each other.
In exchange for minimum charges, you get to avail a service that works for your business growth. As both the buyer and seller are beholden by a mutual contract, therefore, the risks of deceit is negligible.
Escrow payment method is beneficial in terms of small businesses, international trades and other essential deals like that of jewellery, property, vehicles and so on.
If you have the trust of an escrow service provider, then your transaction risks are least and you get to crack better deals every time.
It also improves your business aesthetics. So, next time you are making a business deal, take the advantage of the escrow services.