Business Escrow in 2023

Business Escrow has been disrupted by fintech in recent years

The last few decades are littered with companies that have leveraged the internet and other modern technologies to disrupt traditional business services, and business escrow is no different. With the arrival of advanced financial technology, otherwise known as fintech, a new type of escrow agent is available that adds simplicity and a competitive return to the safety businesses already expect from an escrow account.

With continuing geopolitical tensions and supply chain disruptions, the need for business escrow has only increased. Whether a business is making a major investment, acquiring a competitor, or restocking their inventory, escrow can help protect their investments. So, what are the key benefits a business escrow agent should offer in 2023?

In 2023, business escrow accounts should reduce transaction risk.

Business escrow services can provide protections for both buyers and sellers who are entering into a large transaction. In these situations, the escrow agent acts as a neutral third party ensuring that contract terms are met, thereby reducing transactional risk for both parties.

For buyers, this means that payment funds are held securely with the escrow agent until the conditions of the contract are met. This prevents a buyer from paying for goods that don’t arrive or that don’t meet the agreed upon specifications. For sellers, there is peace of mind that the funds for the transaction are set aside and available for transfer once the sale concludes. Additionally, goods that are expensive, fragile, or time-consuming to manufacture can be covered under the terms of the escrow agreement to ensure safe delivery before funds are released.

In 2023, business escrow accounts should offer the highest level of safety.

Escrow agents should have access to multiple options for protecting business cash while it waits to be deployed, but the most robust option for protection is insurance through the FDIC or NCUA. This is because the FDIC and NCUA are backed by the full faith and credit of the U.S. Government. However, FDIC / NCUA insurance is limited and, in many cases, the standard $250k coverage is not enough.

Our company, the American Deposit Management Co. [ADM], offers multiple options for protecting business escrow cash. In addition, we’ve developed a proprietary network of banks and credit unions that allows us to distribute exceptionally large sums of business cash so that every penny is protected by FDIC / NCUA insurance. This gives businesses access to the ultimate protection for escrow cash.

In 2023, business escrow accounts should offer competitive returns.

While business cash is locked away in escrow, it should be generating income. However, earning a competitive rate while ensuring 100% protection for large sums of business cash has traditionally been a complex task. Fortunately for the business community, the days of sacrificing return for safety are over.

By leveraging proprietary fintech and our robust network of financial institutions, ADM allows businesses to achieve a nationally competitive return on their escrow cash. This is because financial institutions in our network compete for business cash. In addition, we can often customize insurance offerings when appropriate to achieve even better returns.

As interest rates are set to rise in 2023, leaders should work to maximize their investment income while preserving the safety of their business cash. With ADM, this process is simple.

In 2023, business escrow agents should provide a suite of top-notch services.

Choosing the right escrow agent is more than finding 100% safety and a competitive return. Businesses also need a reliable partner that can provide valuable insights and consult on overall cash management. In essence, businesses need a partner they can trust.

At ADM, our team is our secret sauce, and you will understand that when you work with us. Our professionals enjoy serving our clients’ cash management needs in every way we can. So, in addition to escrow, we offer our clients several other valuable services like Marketplace Banking™, Bond Proceed Management, and much more. Our comprehensive suite of cash management services provides businesses and government entities with access to extended safety and nationally competitive returns for all their cash.

Earn More, Risk Less® with Business Escrow by ADM

If you are a part of a business or government entity, and you are looking for escrow services or other cash management solutions, contact the ADM team. You can easily chat with one of our agents using the box at the bottom of your screen, or simply give us a call. We do not operate a call center, and if we are not available, we will always return your messages.

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