How Does a Corporate Escrow Company in AZ Help Small Businesses?
Services provided by a corporate escrow company in AZ are something that most small business owners will become familiar with at some point in their careers. While some industries use escrow services more than others, there are a few distinctive situations in which every business owner will likely use an escrow account.
Services Provided by a Corporate Escrow Company in AZ
An escrow is a deposit of funds for goods or services that are to be delivered to a specific recipient upon completion of an agreed-upon condition or event. The funds are retained by a third party and are only released when both parties have fulfilled their duties, ensuring that everyone involved in the transaction receives what they were promised.
Escrow services are designed to protect both parties in a transaction, especially during business deals that include many complicated steps, such as buying property or acquiring a company. Many people are already familiar with escrow services from dealing with the mortgage for their home.
How do Escrow Services Work?
The two parties conducting the transaction will compile a list of items that need to be completed before the transfer of funds is complete. This information is delivered to the escrow officer, which is typically the loan officer at the bank where the title of the property is held. Once this step is finalized, the transaction process can take place.
It’s always the responsibility of the corporate escrow company in AZ to make sure that all of the details in the escrow agreement are met and properly executed before the transaction is officially concluded. After both parties have met their escrow obligations, the funds and/or property deeds or documentation will be transferred to the designated parties and the escrow will be closed.
When do Small Businesses a Corporate Escrow Company in AZ?
Escrow services are typically required when transferring large sums of money between parties. Escrow services can be used for all types of transactions, but especially for the following examples.
Mortgages: For both personal and corporate mortgages, down payments and closing fees will typically be processed through an escrow service. Buying or selling real estate is a multifaceted process which involves a number of steps that require large amounts of time and money. To ensure all parties involved are in agreement and feel safe throughout the transaction, most small businesses choose to use escrow services.
Property transactions: Purchasing a vehicle or other type of large property asset – especially from an individual – should be transacted through an escrow service. This can include machinery, production equipment, or even non-mortgaged property. Any sizable transaction that requires a large cash outlay or a transfer of ownership will have a longer processing time, so it’s important to have any cash deposits for that transaction in a protected place while the details of the transaction are being finalized.
Online property transactions and transfers: Many business owners are choosing to use escrow services for online transactions and transfers – even smaller transactions. When conducting business with a person you’ve never met, it’s best to exercise caution and perform transactions through a neutral third party whenever possible.
Your business is likely to require an escrow service at some time in the future if you haven’t already. Work with a corporate escrow company in AZ that you know and trust for the smoothest process to completing these important business transactions. For more information on how we can help your business with its escrow services, call us today to schedule a consultation.