Escrowing funds for contract work protects both the Buyer and the Seller. Funds are escrowed pursuant to terms of a contract between the buyer and the Seller and are released based on those terms. The Seller is protected because funds that are in escrow cannot be used by the Buyer to pay for any other purchase and cannot be returned to the Buyer outside of the terms of the contract. The Buyer is protected because the funds cannot be released to the Seller outside the terms of the contract.
If you are planning to pay for, or provide, contract work that extends over a period of time with Tradebank, be sure to contact your broker for escrow assistance.
