When entering into a trading transaction with previously unknown parties, you may desire protection for non-payment by the buyer or protection for non-performance by the seller. A buyer or seller can invite the counterparty to settle its trading with escrow to secure the transaction. Acting as a third party,
the Escrow Agent (Bank) achieves this by providing both the buyer and the seller with a safe and efficient process that guarantees problem-free transactions: buyers have the opportunity to inspect the goods before instructing
the Escrow Agent to pay and sellers are assured that - if the goods are in
accordance with the terms of the sales agreement - payment is guaranteed since
the money is already in the escrow account with a reputable bank before the goods were sent.
A single escrow agreement between the same buyer and seller can cover many transactions.