Escrow Associates

The Case for an Escrow Agreement

How a technology escrow agreement helped NetFacilities close new business.

by Chris Smith
President, Escrow Associates, LLC

In 2002, a successful facilities maintenance company developed an exclusive, web-based work order system that allowed clients to send and monitor work orders from start to completion. This system was so successful in scheduling and providing services that clients wanted their own web-based work order system to send and monitor work orders from start to completion to all of their vendors and in-house maintenance staff to better manage their operations. To deliver this powerful application NetFacilities, Inc was formed in 2002 and officially released their solution for live use in 2003.

NetFacilities was quickly able to gain the attention of many organizations, both small and large, that realized the potential efficiencies and cost savings of managing their facilities via the NetFacilities tool. However, these organizations also realized that relying upon NetFacilities for such an important role may have risk as well. NetFacilities has fantastic technology but the company is delivering an ASP (100% web-based and hosted by NetFacilities) which raised a few questions about how to make sure clients are protected.

Recognizing prospective clients’ concern, NetFacilities wanted to provide a solid contingency plan for clients in order to ease their potential concerns about the “software” being available no matter what happens to the company. NetFacilities turned to Escrow Associates, LLC to design a comprehensive technology escrow program for NetFacilities to offer prospective clients a business continuance plan and clearly demonstrate that NetFacilities is committed to their long term success.

Escrow Associates provided all the assurances that should be expected from a Tier One technology escrow provider; state of the art media vault storage, experienced staff, professional liability insurance, FTP depositing services, online account access and more.

NetFacilities selected Escrow Associates’ flexible Two-Party escrow agreement to provide their clients with superior escrow protection and afford NetFacilities the flexibility to offer each client unique escrow terms if necessary. The Escrow Associates solution provides NetFacilities with the flexibility and efficiently required so they can meet their escrow requirements responsibly and still have time to focus on growing their client base.