Cashing a business check is similar to cashing a personal check, though slightly more intricate. This is because business checks draw funds from the company account rather than an individual’s personal checking account.
First, verify if the check is legitimate and contains the correct amount. If so, take it to your bank or a check-cashing service and ask them to cash it for you; some banks may charge a fee for this service.
You could always ask a friend or family member to cash your check for you, but this isn’t always a reliable solution. The person with the account must be available every time the check comes in which can be an inconvenience.
Another option is to open a prepaid debit card and add the check to it. This process is straightforward and secure, though there may be a fee involved.
Prepaid debit cards often feature mobile apps that let you scan a check and load it onto the card, enabling purchases or withdrawals with ease. Some even provide free money transfers – another convenient way to cash a check.
Prepaid debit cards are an easy and convenient way to cash a business check, often more convenient than visiting your local bank or check-cashing place. Plus, the funds on these cards cannot be stolen or used fraudulently.
Some check-cashing services collaborate with major retailers, such as Walmart, to allow business owners to cash their checks at any of their stores. This is an ideal option for those who can’t cash their checks from home or who want to avoid fees that could amount to up to 5% of the check’s total value.
Walmart and Money Services, for instance, accept most types of checks including payroll checks. Furthermore, these companies provide speedy and friendly service while handling large sums of money quickly.
Alternately, you could try finding someone with a bank account at the issuing bank that would endorse the back of the check with their name and signature – creating a “third-party check.” In this way, the bank will use this individual’s account to back the check for you, saving you from having to pay any cashing fees.
The downside of having a friend or relative cash your business check is that they must be present every time it is cashed, which can be both inconvenient and costly for you. Furthermore, make sure they have sufficient access to your business accounts in order to successfully cash the check.
Finally, in order to cash a business check you must have access to your business bank account. Having this type of account makes it simple to deposit checks and manage the finances for your company. Furthermore, having separate bank assets for legal reasons helps maintain the legal identity of your business.