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13. What are the benefits of using Escrow over payment in advance?
When your supplier is in financial difficulties, the buyer runs the risk of losing their money. If the buyer pays into the escrow account, the money is safe until the supplier has delivered. If the supplier has not delivered within the time agreed, buyer and seller shall agree that the escrow agent will pay the money back to the buyer. Alternatively, buyer and seller can agree to make an extension and inform escrow agent jointly.
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