You need it:

  • The first deal with a new supplier (especially from China, Turkey or other high-risk countries).
  • A deal worth more than $100,000.
  • The supplier demands prepayment, but you have no track record with them.

An unnecessary complication:

  • A long-standing partner with 3+ years of cooperation.
  • A small deal (the bank's escrow fee may exceed the risk).
  • An urgent order (escrow adds 3–5 days to agree the terms).

Alternative: a letter of credit. More expensive, but more reliable for large amounts.