Using an Escrow Account could give you financial security

Over the last few of months we’ve seen numerous postponements and cancellations of conference and meetings due to COVID 19. No-one knows what will happen when business re-opens properly, will the virus come back in another wave and how sound is financial situation of your suppliers?

One of the ways to secure payments is by using an Escrow Account, which is a joint account where funds are held in trust by a 3rd party. When the transaction has been completed the money will be paid to the supplier.

To set up an Escrow Account the buyer and supplier need to make an agreement and the trustee will only release payments on the directions of both parties. It is a secure, transparent and unbiased payment system for everyone involved.

In the current Corona virus situation, buyers who are using an Escrow Account have benefitted:

• If both parties agree to postpone rather than cancel the event, they can instruct the escrow company to continue to hold the funds until the new event dates are agreed.
• From the supplier point of view, the buyer is still committed to holding the event or is protected if the buyer goes bust.
• From the buyer point of view, they are protected if the supplier goes bust, or there is a change in ownership of the venue. If the event is overseas the budget is secure from exchange rate fluctuations.
• If either the buyer or supplier have to cancel due to Force Majeure, then the money is with a 3rd party.

Escrow Accounts have a cost to set up and the event will need to be substantial to make this worthwhile. However, in these changing times it is well worth investigating this method of payment as it may prove more secure than paying deposits directly to suppliers in an uncertain future.