Not every business owner needs or wants a business checking account. You may not write any checks, so the banking fees associated with a business checking account are a waste of money. It is becoming more common for small, local businesses because they can take credit card payments with alternative processing services. But what do you do when you get your first check written to your business and not you? The following are three things you should be aware of.
Your bank will not likely cash the check
If you have a personal checking account, there is no chance that your bank will cash the check. Because you have a personal checking account, they have no idea who is entitled to cash checks under the business name. They will not even allow you to deposit the check. This is one of the main reasons why people register their business name and open a business account, but you still will be paying a lot of fees for the occasional check.
You can use certain online services
There are some prepaid debit cards and aggregate payment services that allow for depositing checks via an app on your smartphone. Basically, you endorse the check and then take a picture of the front and back of the check. After this, you simply wait for the check to clear, which can take several business days. Although the process is slow, some of these online companies are not concerned about the check having a business name.
You can use a check cashing service
There are many check cashing services that can be found in most cities in the country. Although many of them cater to cashing checks for individuals, there are some that offer a similar service to a business. You will have to open a business account with them, and this will require that you show proof that you own the business. Different check cashing companies will have different requirements, so you will have to inquire. Once you have set up the account, it becomes easy to cash a check, and it will be fast. If you don't receive too many checks made out to your business, this may be your best bet. The fee that you will pay will be on each check you cash.
For many business owners, there is no reason to have a business checking account, but the first time you receive a check made out to your business, you will need a way to cash the check. Your personal checking account will not be an option. There are certain online accounts that you may have access to that are possibilities, but there will be a delay in getting your money. A business check cashing company may be your best choice. A business owner only needs to open an account, and you can quickly cash a check.
Contact a local business check cashing service today for more information.