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  Escrow Basics  
  Escrow is a controlled payment process in which a third party secures a transaction between a buyer and a seller. Funds related to the transaction are held in a FDIC insured bank to guarantee security for both parties. This allows both sides the same security and mitigates any risks inherent to transferring goods. Escrow is useful for risk mitigation due to the third party verifying, tracking, and securing the funds until both parties are satisfied with the arrangement.

Escrow has historically been used for transactions where large sums of money are involved or there is a great deal of compliance requirements before a deal can be made. However, with the rising popularity of online transactions and private sellers escrow is a useful tool for any transaction where the parties desire more financial security. Escrow works in a few basic steps:

How Shelby Escrow works:

Buyer and Seller agree to terms
Buyer sends money to FDIC banking partner of Shelby Financial
Seller ships merchandise to Buyer
Buyer accepts merchandise
Shelby releases funds to seller
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