Escrow Process Explained
Escrow is the foundation of trust on Enterpricr. It ensures that buyers never pay without receiving what they were promised, and sellers never transfer assets without getting paid. Here is exactly how it works.
How Escrow Protects You
For Buyers
- Your money is held safely until you confirm you received what was promised
- Full refund if the seller fails to deliver during due diligence
- Dispute resolution if the asset doesn't match the listing
For Sellers
- Buyer's funds are verified and locked before you transfer anything
- Auto-release if the buyer doesn't respond within the confirmation window
- Installment payments are individually escrowed -- each one is protected
The Four-Step Escrow Process
Buyer Initiates Payment
Buyer
You submit your payment (lump sum or first installment + down payment) through Enterpricr's checkout system.
Seller
You receive a notification that escrow has been funded. The deal is now active.
Enterpricr
Funds are held in a secure escrow account. Neither party can access them yet.
Due Diligence Period
Buyer
You have 7-14 days (depending on deal size) to verify the business matches the listing. Request documentation, access analytics, and confirm everything.
Seller
You provide access to requested data, answer questions, and demonstrate the business is as described.
Enterpricr
Funds remain in escrow. The clock is running on the due diligence window.
Asset Transfer
Buyer
You receive all accounts, credentials, code, and assets according to the transfer checklist.
Seller
You transfer everything listed in the agreement. Follow the platform's step-by-step transfer guide for your asset type.
Enterpricr
Transfer progress is tracked. Both parties confirm each step is complete.
Buyer Confirms Receipt
Buyer
You verify that all assets were received and are functioning as described. You click 'Confirm Receipt' in your dashboard.
Seller
You wait for buyer confirmation. If the buyer doesn't respond within the confirmation window, escrow auto-releases.
Enterpricr
Once confirmed (or after the auto-release window), funds are released to the seller's connected payout method.
Escrow for Installment Payments
Installment payments follow the same escrow principles, but on a monthly cycle:
- 1.Buyer's monthly payment is automatically charged on the due date.
- 2.Payment is held in escrow for 48 hours as a verification period.
- 3.After 48 hours, the seller's portion is released. Enterpricr's service fee is deducted.
- 4.If payment fails, the buyer has a 7-day grace period. After 3 missed payments, the contract defaults.
- 5.Upon final payment, escrow closes and full ownership is confirmed.
Frequently Asked Questions
What happens if the buyer and seller disagree?
Enterpricr provides dispute resolution. If either party raises a dispute during the escrow period, funds are frozen while the platform reviews evidence from both sides. Decisions are based on the original listing, messages, and transfer documentation.
How does escrow work with installment payments?
Each monthly installment goes through escrow individually. The buyer's payment is held for 48 hours, then released to the seller. If the buyer misses 3 payments, the contract defaults and the asset reverts to the seller. All previous payments are non-refundable.
What are the escrow fees?
Escrow fees are included in the platform's service fee (0.5% to 8% depending on your subscription tier). There are no additional escrow charges. For transactions over $10,000, Enterpricr partners with Escrow.com for additional security.
How long does it take to get paid?
After the buyer confirms receipt, funds are released to your Stripe Connect account within 2-3 business days. For installment payments, each monthly payment is released 48 hours after it clears.
Can I cancel a transaction after escrow is funded?
Both parties can mutually agree to cancel, in which case funds are returned to the buyer minus any processing fees. Unilateral cancellation by the seller may result in penalties. Buyer-initiated cancellation during due diligence returns full funds.
Is my money safe in escrow?
Yes. Escrow funds are held in segregated accounts separate from Enterpricr's operating funds. For transactions under $10,000, Stripe handles the custody. For larger transactions, Escrow.com (a licensed escrow company) holds the funds.
Due Diligence Checklist
Know exactly what to verify before closing.
Read guideSelling Your First Startup
Step-by-step guide to your first sale.
Read guideEvery transaction on Enterpricr is escrow-protected
Buy or sell with confidence knowing your funds and assets are secured.
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