Escrow is the name of the process undertaken during high-value financial transactions, which sees money deposited into a holding account after a contract has been signed.
An official company escrow agent releases money once all involved parties have met all contractual obligations and a settlement takes place. Using the services of an online escrow agency such as Escrow.com provides enormous benefits to a company no matter the size of the company or the industry that they specialize in.
Company’s use Escrow.com during the final stages of financial transactions as this offers both parties protection from fraud and misconduct. In the escrow process, if one party doesn’t fulfill their commitments the other party is protected by the escrow agreement.
Escrow.com is particularly useful to a company that is taking part in high-value transactions such as the purchase or sale of property involved in expanding your company or purchase, or sale of any equipment or machinery that is required to manufacture or produce your merchandise.
Using Escrow.com for your company - step by step:
- Two or more parties agree to the sale or purchase of a high-value item such as company premises, machinery or equipment.
- Contracts are drawn up by an Escrow.com representative including terms and conditions, this contract is then signed by both parties ahead of the settlement.
- Money that is required for settlement to take place is put into an online escrow account. This ensures that both parties take all necessary action to make sure that terms and conditions which were stated in the original contract are abided by. Often these terms involve some legal or professional intervention (such as insurance companies) and can be time-consuming to complete, so putting company money into escrow offers a level of financial protection that is essential when dealing with companies or individuals that you don’t know.
- Escrow instructions are prepared by Escrow.com, these written documents include the intentions of both parties and the obligations which each company must fulfill. All parties must sign the escrow instructions which will include an outline of the sum of money being put into escrow, the matters which must be settled before funds can be released and the names and contact details of all involved companies.
- All involved companies carry out their contractual obligations with no risk to their finances or of the other party reneging on the original agreement.
- Escrow is closed. This is the final stage in the company escrow process in which Escrow.com prepares a settlement document which will be distributed to both or all parties. They will then distribute the relevant funds and provide all companies with the relevant documents required to complete the transaction.
If your company is involved with a high-value sale or purchase it is vital that you engage the services of Escrow.com to ensure that your company’s finances are protected in the crucial final stages of a company transaction, this will provide security for the future of your company and minimize risk to your company’s assets without breaking the bank in fees and charges. Visit www.escrow.com for more information.