Deposits and Escrow
Understand the process of making deposits and using Loxala’s escrow services to secure funds, with a clear explanation of how and when funds are released upon project completion.
How the Escrow Process Works
- Funding the Project
Before starting a project, clients are required to deposit funds into an escrow account. This deposit ensures that the freelancer knows the funds are secure and will be released once the work is satisfactorily completed. - Securing Funds in Escrow
The deposited amount is held in escrow, protecting both parties. Freelancers can begin working with confidence, while clients can be assured that payments will only be released when agreed milestones are met.
Releasing Funds from Escrow
- Milestone-Based Payments
For projects divided into milestones, payments are released incrementally as each milestone is completed and approved by the client. This helps manage cash flow and ensures project progress aligns with expectations. - Final Payment Upon Project Completion
Once the freelancer submits the final deliverables, the client reviews the work. If satisfied, the client can release the remaining escrowed funds to the freelancer. - Refund Requests
If the project does not proceed as planned, clients can request a refund from the escrow account within a specified period. Both parties are notified, and the refund process is managed seamlessly within the platform.
Benefits of Using Escrow
- Financial Security
Depositing funds into escrow ensures that clients only pay for work that meets their standards, and freelancers are assured they will be compensated for their efforts. - Dispute Resolution
In case of disagreements, funds in escrow remain secure while both parties work towards a resolution, supported by Loxala’s dispute resolution team if necessary. - Trust and Transparency
Using escrow builds trust, fostering positive collaborations between clients and freelancers by ensuring transparent payment practices.
Frequently Asked Questions
Can I cancel a deposit after funding the escrow?
Yes, deposits can be refunded if the project is canceled before funds are released, subject to Loxala’s refund policies.
How are funds released if a dispute arises?
Funds remain in escrow until a resolution is reached. Loxala’s team may step in to mediate if both parties cannot agree.
Is there a fee for using escrow services?
A small transaction fee applies when depositing funds into escrow, ensuring the security of transactions.