Solutions for DMCs
Destination Management Companies benefit when clients pay with Meeting Escrow
Key Services we provide to a DMC's clients
1) Single Vendor Payment Solution
2) Foreign Currency Budget Protection
3) Advance Deposit Escrow
4) VAT tax recovery for out-of-country programs
5) Event insurance
What are the benefits for DMCs?
Reduce accounts receivable costs - we proactively track and manage all payments per your contract signed with the client and ensure you get paid on time, every time. As a small or medium-sized business, this lets you and your team focus on sales and operations, not on chasing client deposits.
Eliminate merchant account fees - we make all payments by electronic transfer AND we pay the wire transfer fees. DMCs are constantly paying fees to everyone. Merchant fees take a big bite out of already slim margins. With Meeting Escrow, you enjoy a 2-4% bump in profitability.
Avoid financial risk - when you accept the holding of deposits in escrow, clients must deposit 100% of the contract value in advance. Should there be a client business failure, funds in escrow will be forwarded to the DMC, per the terms of the Escrow Agreement.
Increase collections - when you accept the escrow of deposits, you also increase your collections in the event of cancellation without cause. Everyone wants their money back as soon as possible so all parties are motivated to move to a quick and equitable solution.
Get the funds you need to pay advance deposits to sub-vendors. Our Escrow Addendum was created with the needs of DMCs in mind and provides that funds will be released prior to program operation if required to pay sub-vendors.
Demonstrates 100% transparency to your client and gives them 100% security.
What are the downsides of our escrow solution?
Just one: loss of opportunity to use client deposits, interest-free, for operational cash flow.
How does the deposit escrow solution work for DMCs?
Clients who work with Meeting Escrow will make deposit escrow a part of their RFP requirements. If DMC clients do not already work with us, sales teams can refer us.
DMC and client sign a one-page "Escrow Addendum" which gets attached to the DMC contract and replaces the normal payment schedule. The Escrow Addendum provides for an initial deposit to secure the booking and ensure we have the correct banking information, the 100% funding of the escrow by an agreed-upon date, and full payment to the DMC on the first or last day of the program. In addition, funds required to pay sub-vendors prior to program operation are scheduled for release in the Escrow Addendum.
The Escrow Addendum is subject to the strict terms of an Escrow Trust Agreement which binds Meeting Escrow to hold funds in trust and release funds per the Escrow Addendum schedule.
DMC and client receive monthly escrow trust account bank statements (actual bank statements) for 100% transparency and security.
There are no fees for vendors receiving payment via Meeting Escrow. Clients holding funds in trust with Meeting Escrow pay for our services.
Are Meeting Escrow Referrals Commissionable?
Yes, any referral your provide that leads to any organization (whether your client or not) signing on with Meeting Escrow generates a 3-year trailing commission on their annual fee at no cost to the client.