What is escrow ?
An escrow is a financial arrangement where a 3rd party holds and regulates payment of the funds required for 2 parties involved during a transaction. It makes transaction more secure during any buying , selling or renting process by holding the payment in a secure account. When both the parties mark the transaction or transfer complete the payment is release to the seller or owner.
Escrow is really useful when the buyer or renter pay the money in advance and the paper work really takes time to be completed. It is obvious level of distrust may arise. Let’s take an example when you are buying a used car or buying/renting a property. The buyer has to give the money first then the seller starts the paper work. There are chances the paper work may not happen or the quality is not what explained. In Other way What if the buyer starts negotiating after the paper work done?
Escrow account is really useful in these type of scenarios. Buyer or renter has to make the payment first and the money will be deposited secure escrow account of Plomor. When all the paper work and the asset is delivered , then the buyer instructs Plomor to release the fund. Escrow process can be applied in many fields like renting , buying , selling properties , assets and vehicles . While traditional escrow service is sort of difficult and must be obtained through banks and lawyers, Plomor provides online escrow services at affordable rates. This eliminates all legal jargon and allows for secure transactions and confident buyers and sellers.
How does Escrow Work?
Plomor reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disburses funds when both Buyers and Sellers are satisfied.
- Initial Agreement – Buyer posts a request for free and invite owners or sellers to bid on your request. Buyer assigns the request to the provider by chatting or physically verifying the asset. Finally they agrees to a term of transaction.(EX : The car should be in specified condition and the paper work must be done)
- Creating Milestone – After the project is finalised the requester ask the provider to create milestones. (Ex : When buying a car milestones will be completion of paper work, doing minor fixes , paint job. When buying a property the milestones will be Cleaning , paint job , paperwork ) . Suppose the buying price of the whole car is 5 lacks , then the seller can create multiple milestones. Beauty of the system is buyer can get money per milestone rather than waiting for the completion of the project. When the seller delivers the car gets 3 lakhs and when the paper work is done gets 2 lakhs.
- Buyer makes the payment : When milestones are created , the buyer has to make the payment . The payment will be securely stored with Plomor. The provider gets a notification that payment is done for the particular milestone.
- Seller delivers the merchandise – Seller delivers the product as per specification and submits the tracing information in case any third party transport is used.
- Buyer / renter accepts the delivery : Buyer or the renter accepts the delivery and asks Plomor to release the payment to the seller.
- Plomor release the payment : Plomor release the fund to the respective provider
- Provider gets a rating : Based on the experience of the purchase requester provides rating to the provider . Rating system helps the seller to attract more customer.
Periodic notification of the transaction Status
Plomor enables you to keep track of the transaction efficiently. We have work room concept where every action are recorded and additionally you can attach files and images for convenience. You can additionally chat with the sellers , visit their profile and decide to buy from them or not with existing reviews and ratings.