Small business owners often don't open a bank account dedicated solely to their business transactions. Without a business account, any checks that are written out to your business name could be difficult to cash.
You don't want to appear unprofessional by asking a customer to make out a new check in your own name, so it's important to know your options for cashing a commercial check without a business account.
1. Go to the Issuing Bank
One of the major obstacles that prevents you from cashing a business check without a business account is the fact that there is no account backing the funds. If the check bounces, your financial institution could be forced to foot the bill. By going to the bank that issued the check you received from a customer, you can eliminate this uncertainty.
Instead of using your business account to back the funds, the issuing bank will verify that there are funds available in the account on which the check was written. You can access your cash without opening a business account by going to the issuing bank when checks are written out to your business name.
2. Visit a Check-Cashing Store
Some stores cater solely to individuals who don't have a bank account. Most of these stores offer check-cashing services for both personal and business payments, so you can visit a check-cashing store for help turning a customer's check into cash when you don't have a business account.
As beneficial as a check-cashing service can be, there are some drawbacks to using this type of service to cash your business checks. A check-cashing store will charge you a fee in exchange for cashing a business check. This fee can vary based on the amount of the check and your history with the store. Contact a specific store, such as Check Pros Financial Services, to learn about their policies.
3. Use an App and a Debit Card Transfer
Thanks to advancements in modern technology, you can cash business checks using an app on your phone. Some apps allow you to scan in a business check, then transfer the funds to a prepaid debit card once they have been withdrawn from your customer's account.
You may have to wait a few days to access your money when using an app and a prepaid debit card transfer, but the fees associated with this option tend to be relatively low.
No bank account (either personal or business) is required to take advantage of many mobile check-cashing apps, making them a convenient option.
Unfortunately, personal finance is not a subject that is widely taught in schools. And yet, to be a functioning adult in society, you need to know the basics about earning money, saving money, taking out loans, paying interest, and so forth. Money makes the world go 'round, and you won't get very far in the world without a basic money education. There are many ways to learn more about money, from reading books to visiting a personal financial advisor. You can start by reading some of the articles on this blog, which address a wide range of financial topics for people in every situation.