An Escrow Account would ensure certainty along-with the law firm's supervision that the panelist money is kept for your benefit and stand the scrutiny of any authorities. (An Escrow account is an arrangement where an independent trusted third-party (bank) receives and disburses money and/or documents for two or more transacting parties, with the timing of such disbursement by the third-party dependent on the performance by the parties of agreed-upon contractual provisions)
Escrow a/c refers to an arrangement where assets or revenue streams are held in the safe custody of a Bank as safety against a situation when a contract isn’t fulfilled. The escrow arrangement ensures that obligations between parties are met with and transactions are operated in terms of the underlying agreement.
An Escrow account is typically used for lending arrangements, project financing, securitisations, M&A's, buy-back of shares, take-overs, custody, litigations, purchase & sale of land, custody of software source code, etc.
Some of the advantages of the Escrow a/c include: 1) Greater security and comfort. 2) Compliance with regulatory requirements. 3) Safe custody of cash / documents and 4) Easy monitoring.
-------------------------------------------------------------------------------
An escrow is a safe and easy cross-border financial instrument. It protects the supplier against non-payment by the buyer and equally protects the buyer against loosing money through non-performance of the supplier.
Your benefits:
Financial protection for supplier and buyerHigh security at low costsEfficient cross-border paymentsFits your business practiceEasy and quick to set upHardly any paperwork
Financial protection for supplier and buyerADVANTAGES FOR THE BUYER Possibility of inspection, Protection against fraud.
ADVANTAGES FOR THE SELLER Limits of the procedure, Protection against fraud , Security systems & Complete protection against complaints of goods not posted or of delayed return( incase of few banks).
-------------------------------------------------------------------------------
