Meta



Escrow

Another common term used in debt financing is the “escrow”. Here it relates to cash, securities or other valuable instruments that are held by a third party to ensure that the obligations under a contract are discharged. By doing so, the third party’s risk is being mitigated. This is commonly used in infrastructure projects like road,power,etc where an escrow account can be set up at a bank for depositing the payments.

If you found this post useful, keep updated with future posts by subscribing to FMAccounting (for free) through RSS or email.


No Responses to “Escrow”  

  1. No Comments

Leave a Reply


Keep Updated

Recommended