Why use escrow? One word: Safety
An escrow account is a third-party holding account used to safeguard funds during a transaction. The funds are deposited into the account by the buyer and released to the seller once the terms of the transaction have been met. This type of arrangement is often used in situations where there is a high degree of trust required, such as in the sale of a business or property or large transactions between cross border suppliers and their customers. Escrow accounts provide an added layer of protection for both buyers and sellers, as well as peace of mind. In addition, Escrow accounts can also be used in situations where one party needs to make periodic payments to another, such as a staggered payment schedule for a large OEM manufacturing run. By using an escrow agent, both parties can rest assured that payments will be made on time and in full. It is important to choose a reputable lawyer or law firm to act as your escrow agent, our Head of Tax, Banking and Finance has spent his career helping high net worth individuals and large companies move funds around the world safely.
Unfortunately, cross border disputes are common, and enforcing your rights across borders can be very difficult and it some cases next to impossible. Escrow ensures that if you ship your goods, you will get paid, and vice versa if you purchase goods that are not received, you will not lose your investment.
Talk to us today about safeguarding your transactions in Southeast Asia.