Bounced Cheques
Research has shown recently that no matter the size of the business, be it small, medium or large, all companies have had bounced checks. Very small companies, with under ten employees, as the least likely to do this. Often, this happens because the business owner has been told a check has cleared in his business account so he writes his checks off of that amount. Then later he is told the check actually didn’t clear and now bank changes for overdrafts take effect.
There can be up to seven working days for a check to clear and the time it takes depends on three things. The first one is the currency that the check is in. Another aspect is that the bank the check is from may not be in the same group of companies as the bank the check is drawn from. And the last reason is the business day the checks is paid on.
It is the fault of the bank to claim a cleared check when it really has not. Business owners are taking a risk by accepting a check because they could be left with a debt so other forms of payment are more reliable and safe.
