Why Your Business Needs An Escrow Service Today

Escrow is a legal term that describes a financial instrument whereby an asset or escrow money is held by a third party on behalf of two other parties that are in the process of completing a transaction.

Did you get that? Again, it’s okay if you did not! In simpler terms, escrow is a process used when two parties are in the process of completing a transaction, and there is uncertainty as regards whether one party or another would be able to fulfil their obligations.

An example would be in a situation where an online order is made, and the buyer is scared that the seller or service provider might not deliver. The seller is also scared that sending his or her goods before payment might be very risky. Then, an escrow service is needed to keep the money, or payment option chosen until both sides are satisfied.

I’m sure you get it now.


In most cases, the escrow process occurs between the time a seller accepts an offer to sell, and the buyer takes possession of the sold item. In some cases, it’s not just goods, but services too could be rendered.

This means that it solves the problem of trust that may be exhibited by both the seller and the buyer.


There are hundreds and thousands of reasons why your business needs an escrow service, and three of them include:

  • For both the buyers and sellers, escrow provides reliability and ensures that payments are protected every step of the way.
  • Escrow provides assurance that funds are protected through straightforward payment steps.
  • It limits and reduces internet/business frauds to the barest minimum.


Reputation: It is necessary to make sure that the company being used is free from all unethical behaviours and has a very good reputation.

Communication: It is important to choose an escrow company that can present information and consistently be responsive as it is an indicator of how a company offers its services.

Location: While it is rare to have a need to visit your escrow company, considering the physical location is also of equal importance. At the very least, you should choose an escrow company that is located in the same region in case of a need to visit them.

Compare Costs: As much as you want to go for a cheaper price, it is important to choose an escrow company that puts your needs first.

If you run a business in Nigeria and looking for an Escrow service to use, you should try Sanwo as we tick all of the prerequisites to consider before choosing an escrow company. To get started on Sanwo, click here.

Until next time, byeeeee!

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