Leverage escrow services to build B2B trust
Earning trust is one of the more difficult challenges in establishing relationships with new clients in B2B. A key concern is how to close a deal without the benefit of prior experience and mutual comfort. Leveraging escrow services is a logical way to satisfy the interests of both parties to the transaction until you get familiar with each other.
The following is an overview of the benefits of using escrow services to build trust in B2B and insights on the value it provides B2B providers.
Assurance of Dual-Party Satisfaction
As a B2B service provider, your hope is to establish relationships with more clients and grow wisely. However, it is hard to hold complete confidence in getting paid for any service without a history with a client. In the same way, your client may have concerns about making an agreement with a provider and paying before seeing the final delivery.
A reputable escrow service is considered to be the right solution to address the concerns of both the provider and the client. The service provider delivers the agreed upon solutions to the escrow service, and the client makes the payment through an escrow company. After both parties have delivered on their part of the deal, the escrow firm finalizes the transaction. Your B2B company can feel comfortable that it will get paid for the goods delivered.
Broader Business Reach
The burden of connecting with unfamiliar clients is enhanced when you conduct business globally. In fact, some B2B providers stick to limited geographic territories to avoid the risks of making deals with companies in foreign countries.
However, doing so means missing significant opportunities for growth. For instance, an American Express survey of small and mid-sized U.S. companies revealed that 90 percent of surveyed companies agree that international markets offer significant growth opportunities. The same survey showed that 80 percent of respondents already operating internationally say revenues are greater compared to one year ago, and on average, 26 percent of their revenue growth can be linked to international sales alone.
What can you do to reap the rewards of expanding your services globally while avoiding the risks of international trade? With a well-respected escrow provider that operates internationally, you can safely promote your services around the world without having to worry about collecting payment. You also do not have to worry about currency exchange. You simply deliver your services as you would when doing business domestically, and await payment.
You can also take more comfort in brokering larger-scale deals with a new or unfamiliar client because of the safety afforded by the third-party escrow service. The risk of completing a huge service for a client and not getting paid is mitigated. This benefit helps you increase your global services, improve economies of scale, and optimize profits.
Negotiate Fees and Terms
You can also negotiate the payment of fees and terms with your clients. Escrow services typically charge a fee based on the amount of the deal. You can negotiate the payment of this fee with your customers. You could pay it directly, add it on to the client’s cost for the services, or even split the fee.
Because the client has the chance to inspect the completed services and deliverables before escrow sends payment to your business, there is reduced risk of claims for refunds. Refunds are costly for a B2B firm. Since you do not receive payment until after inspection, you do not have to worry about completely reversing the transaction if the customer is unhappy.
These benefits highlight the convenience and value of brokering deals in B2B through a respected escrow service. Leverage these benefits to attract new customers, build client relationships founded on trust, and close global services for your firm! Check out Payoneer Escrow’s free online services.