Commercial Escrows

The term commercial escrow can cover a wide variety of transactions, and Escrow Custodian Services have a team dedicated to providing payment gateway solutions for most of them.

 

In essence, of course, any transaction between two businesses who are not used to working together and who seek a neutral third party to help ensure there are no financial issues, could be regarded as a commercial escrow.

Project Finance

A common form of commercial escrow may be where company A has won a contract, and company B who awarded the contract is now expected to make a large first stage payment up front. That payment may be placed in a commercial escrow until the stage is completed, and the conditions are regarded as having been met, and so on.

 

Until such stage as the terms have all been completed, the money is not released by the escrow company, which could take some time and may require multiple disbursements.

Financial services

 

There are any number of commercial escrows that may fall under the umbrella term of commercial escrow and which may include:

 

  • Advance fee payments for broker arranged loans
  • Company share sales
  • The exchange of financial instruments
  • Earn out provisions
  • Golden handcuff provisions
  • Purchase price provisions
  • Purchase price adjustment
  • Settlement of funds arising from liquidations

Mergers and acquisitions escrows

 

Escrows can help to mitigate risk for many transactions that are part of mergers and acquisitions on behalf of both buyer and seller.

 

Holdback escrows are commonly used where an agreed percentage of the agreed purchase price is retained within an escrow.

 

Escrows may be tailored to cover most reasonable eventualities.

To learn more or to discuss a specific application (without obligation) call 0207 856 0129 and speak to a member of the Escrow Custodian Services team or email info@escrowcustodianservices.co.uk