When it comes to an escrow service, one of the involved parties will go on to deposit certain funds or assets with the escrow agent of the agreement. The escrow account will hold the assets or funds until the conditions stated in the agreement are met. Following this, the escrow agent will go on to deliver the assets or funds to the beneficiary.
Escrow agreements are not only used in highly complex transactions like real estate, intellectual property, mergers and acquisition and project finance transactions etc., but are also used in day-to-day business transactions involving goods and services between businesses and individuals. The escrow service provides great assurity by mitigating fraud and creating an environment of trust.
Escrow agreements fully describe all details and conditions between the participants involved in the agreement. Signing these agreements will ensure that the parties involved will fulfil all the conditions and that the transaction happens reliably and safely.
Most escrow services are created when one of the parties involved in a contract wants to ensure that the other parties in the agreement will stand by whatever they claim to do.
We at Zapitel, help you sell or purchase using our secured and fully digital platform with remarkable benefits like –
● Benefits For The Buyer
If an individual or an organisation is on the buying end, they may be rest assured that their funds will be released only once the seller has completed its end of the bargain, such as shipping the merchandise. The buyer is also safeguarded against delays because the funds are only released after the delivery dates specified in the escrow agreement. If the received items fail the examination, the buyer's money is safe.
● Benefits For The Seller
The seller can be confident in the buyer's desire and ability to pay because the buyer funds the escrow account before the seller releases the merchandise. To eliminate post-transaction issues, our escrow service assures that the seller only does business with purchasers verified by Zapitel.
● Verification And Vetting
The buyers and sellers engaged in a transaction are verified online by us as escrow service providers upon onboarding. The availability of identification, compliance status, and thorough reports saves individuals and small businesses/firms a lot of time, effort, and money. This identification procedure gives businesses new opportunities to attract more customers and on the other hand, mitigates the risk of potential fraud.
● Controlling Risk of Cross-Border Transaction
Zapitel as an escrow service provider, significantly minimises the risks associated with cross-border trade payments like payer risk, enforcement risk and KYC.
● Suited To A Variety Of Products And Services
Escrow services can be employed in various industries. Regardless of the transaction value, an escrow account protects both parties in all transactions, including those involving jewellery, cars, mortgages, real estate, and various services.
● Ideal For Dealing With Fixed Assets
It is advised to employ an escrow service when investing in fixed/ long-term assets like a building, piece of equipment, car or other major investment. Larger transactions like buying machinery, white office supplies or other items that require a lot of funds and take longer to process. These fund deposits are great for keeping things secure in the escrow company's account until the trade is completed and paid for.
