Business owners large and small are always looking for ways to improve. Be it quicker customer response times, shorter closing timelines, or overall cost savings, businesses are constantly using various tools to tweak a little bit here and there in efforts to nudge the needle just a bit higher. Online escrow is one such tool at the disposal of any business buying and selling high dollar items – and can be especially valuable to businesses with international partners.
Escrow companies like PaySAFE can provide a simple, easy-to-use workflow for creating and managing transactions. From the simple items like the buyer’s and seller’s names and total transaction amount to complex purchase agreements and heavy documentation, a simple workflow and history can save time and money while minimizing any potential misunderstandings. Online escrow services also do an excellent job of prompting either party when there are items that require their attention, like the approval of purchase agreements, uploading of required documentation, or approvals for the release of funds.
Lock In Sales
Online escrow can be a great way to separate window shoppers from serious buyers. As all purchase funds are verified and held up front, sellers can rest easily knowing that the total transaction amount is held securely, and is simply awaiting the completion of their agreement. Buyers can also rest easy as funds aren’t released without their approval. This could be at the time of shipment, after arrival, or at various checkpoints throughout the process.
Buying and selling between two individuals or companies across the globe can be challenging. Escrow services like PaySAFE can help ease that tension much as they do with domestic transactions. With significant cost savings over more traditional payment methods – like Letters of Credit – escrow can provide all the security with none of the hassle. Often times escrow can be the most cost effective way to on-board new partnerships, or to transact with other businesses that may not have access to large lines of credit.
There isn’t a business out there that isn’t looking for some sort of a competitive edge, and most often that edge relies on speed. Traditional payment methods like letters of credit can easily get bogged down with paperwork and compliance issues. Escrow works much more quickly, and can often go from funding to disbursement in the matter of only a few days. Compared to the weeks, or even months that can be attached to applying for lines of credit or constructing letters of credit, escrow offers a significant advantage for businesses looking for the ability to turn on a dime.
For more information on how PaySAFE can help you or your business, feel free to contact us at 877.638.1518. If you’re looking for more helpful tips when it comes to business escrow see our posts on the true costs behind letters of credit, international buying and selling, and what Alibaba’s recent IPO means for escrow.