Castler closes Pre-Series A funding of $6 Million led by Flipkart, Capital 2B, IIFL Fintech Fund, Venture Catalysts & Zerodha

How does Escrow work in Distributor Dealer Financing?

The Escrow process typically works like this:

The buyer and dealer agree on the terms of the sale.
The buyer applies for financing.
The Escrow company opens an Escrow account and deposits the purchase price into the account.
The dealer delivers the vehicle to the buyer.
The buyer approves the financing.
The Escrow company releases the purchase price to the dealer.