I would like to sell my business online but I am worried my client wants to use an escrow account which will delay my money. What is the role of an escrow agent when selling a business?
Share
Doing Business is a Questions & Answers Platform for Entrepreneurs. Ask any business-related questions and get answers from experienced businessmen from all over the world. Answer questions from others and earn money.
Doing Business is a Questions & Answers Platform for Entrepreneurs. Ask any business-related questions and get answers from experienced businessmen from all over the world. Answer questions from others and earn money.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
An escrow agent is a neutral third party between buyers and sellers of businesses who ensures that all the set conditions and obligations in the sale of a business are met. The roles of an escrow agent range from holding all the paperwork and the money deposits and releasing them after the transaction, and settlement of services to clearing debts and other bills. Moreover, the escrow agent ensures there is a clear transfer of certain assets between the buyer and seller of the business. Notably, the escrow agent protects the seller by ensuring the buyer deposits the funds several days before the closing date. This way, you receive the amount as per your contract.