Escrow
A neutral third party holding payment until both sides of a transaction meet agreed conditions.
In practice
It's most common in B2B or high-value transactions where trust between buyer and seller hasn't been established yet - the escrow holder releases funds to the seller only once the buyer confirms the goods arrived as expected.
A buyer sourcing a large custom order from a new overseas supplier uses an escrow service so the supplier isn't paid in full until the buyer confirms the shipment matches spec.
Why it matters
Escrow solves the fundamental trust problem in a new business relationship - neither side has to be first to take on full risk, which can be the difference between a deal happening or not.
Worth knowing
- Most valuable in high-value or first-time transactions where trust hasn't been established.
- Release conditions should be clearly defined in advance to avoid disputes later.
- Common in international B2B sourcing, real estate, and large custom-manufacturing orders.
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Let's talk it through
Tell us where things stand with putting escrow into practice and we'll respond with next steps, no forms, no waiting in a queue.
- A specialist replies directly, not a support queue
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- No long-term contract to start the conversation
