Why escrow matters

In any business, escrow is important; it’s arguably becoming increasingly more so as business moves more and more into the world of technology. Most companies have a foothold in the internet and computers. As such, escrow serves to protect you against a variety of potential risks.

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To this end, here is a brief overview of a few ways you can use the likes of Escrow Associates. From source code escrow to due diligence and more, escrow can prove more useful to your business than you might originally think.

 

Software as a Service (SaaS)

If you use software for work, you probably have an idea of how easy it is to become reliant on one product. The problem with software is you only own the license, not the software itself. This is known as ‘Software as a Service’ and uses a simple end user agreement. In short, you buy a license and the provider keeps the product working.

As such, the main risk is when this doesn’t happen and you need the source code. Escrow solves this by providing a third, neutral party that can securely look after the source code. Not only does this reduce damage, it demonstrates trust and commitment on both sides of the agreement.

 

Due diligence

Likewise, online services can also be used to handle more sensitive times of your business. Mergers & Acquisitions are prime examples of this, with the other party often requiring access to certain sensitive data. In these cases, you can again turn to escrow to offer access with Secure Due Diligence.

This still keeps the information secure, but also helps move the entire process online if you choose this option. This keeps people out of your work place, as well as further helping to keep any meetings or transactions discrete. Having people enter the workplace and look through important documents can be quite a disturbance to your workforce, productivity and customers.

 

Other uses

These are just two examples, but there are many ways in which escrow can prove useful. Hardware escrow, for instance, can look after hardware in a similar capacity to software. It can also be used for domain names and various qualifications and verification processes. In short, if your company has a strong reliance on something in this manner, it’s worth investigating into how escrow can help.

For more information on escrow services, click here.

 

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