To give a better understanding of the types of services which we can provide, we have included below some detailed examples of how an escrow service could be of use to you.
A) Investment fundraising:
An escrow service is often a key component in commercial investment fundraising activities.
Use of an escrow service ensures that investors can commit to making an investment (by transferring their investment monies to an escrow service provider such as Riverside Escrow), but have the reassurance that the funds will not be released to the business conducting the fundraise unless and until the fundraising target has been met.
Equally, the business conducting the fundraise has reassurance that investors are committed to the investment, allowing the business to focus on ensuring that the fundraising target is met.
B) Sales of high value goods:
Sales of high value goods can be a daunting process for both the buyer and the seller. The buyer will want to make sure that the seller actually has the goods that they are offering for sale, and the seller will want to make sure that the buyer has the necessary funds to make the purchase.
Concerns can be compounded where parties are making sales and purchases at a distance.
Riverside Escrow’s escrow service ensures that both parties are protected because the seller is required to lodge with us the relevant goods (e.g. cars, wine, art, antiques) prior to conclusion of the sale. Similarly, the buyer is required to lodge with us prior to completion of the transaction the funds required to complete its purchase. Once both parties are content that the sale may be concluded, we release the purchase monies to the seller, and the goods to the buyer thereby removing any uncertainty for the parties.
C) Corporate transactions:
It is common for corporate transactions (e.g. company sales and purchases) to contain an element of deferred consideration or an earn out. Whilst the two scenarios differ slightly, they both have one thing in common in that they require monies to be released following completion, either on an agreed date or when certain criteria have been fulfilled. Our escrow service provides the seller with reassurance that the buyer has the necessary funds to complete the transaction, whilst providing the buyer with comfort that the funds will not be released unless and until the necessary conditions have been fulfilled.
D) Charity fundraising:
In many charity and fundraising events, the money raised will need to be held pending release to the relevant beneficiaries. It is important the money raised through fundraising events is securely held and released at the right time. Escrow is a useful means of ensuring that the funds are protected and that they are released as and when required.
E) Settlement funds following a dispute:
Where a dispute or litigation is settled and one party is required to pay money to the other as part of the settlement, settlement monies can be paid into an escrow account pending finalisation of the relevant settlement agreement. That way, the proposed recipient can be sure that the money is there and available whilst the sender knows that the recipient is not going to receive the money until all the details of the agreement have been finalised and they are comfortable for the money to be released.