Cashing out checks is an important task for businesses and consumers. Although online payments are popular, people don’t always trust this option. The point in this regard is that you have an account with a commercial bank. However, some business owners choose to operate without banks for the Check Cashing purpose.
This article shows you how to cash a check without a bank account. It also explains why it is still wise to have a bank account with your company.
What is Business Certification?
A business check is a check issued against a checking commercial account. In other words, it is based on the assets of the company, not the individual. For example, a business check if you get paid at work instead of depositing it directly into your bank account.
However, business checks can be more complex, especially if they are written for other businesses. For example, a business can use checks to pay suppliers and suppliers or the creditors they owe.
Depending on the type of commercial check, cashing may be easy or a bit difficult.
What Happens When I Get a Business Check?
If you are self-employed, your business is most likely linked to a personal checking account. However, from a legal point of view, personal assets are not protected. Taking checks is more problematic when you have other business forms such as LLC or corporation. Customers are more likely to send checks in your company name. Without an account, it would be difficult to raise funds. Cashing Checks Without a Business Bank Account is not difficult if you have an account with a commercial bank. However, without a commercial bank account, things are more complicated.
If you are unable to open a commercial bank account, your options for cashing out business checks are:
- Walmart and Other Retailers
Most Walmart stores offer cash check services. Not all states allow checks to cash, but companies may show checks at a money center or help desk.
The Company charges a fee based on the type of transaction, and you may collect the amount in cash or via Walmart MoneyCard (additional fees may apply).
- The bank issuing the check
You can usually go to the issuing bank to cash the check to verify that the account is legitimate. However, some banks may charge a fee. This fee may be withdrawn if you choose to open an account with this bank. You can avoid fees by finding friends or family members who have an account with an issuing bank. The bank can use that person’s account to verify the check. However, this respective alternative should not be practiced as a long-term solution, as this particular person must be available for all cashed checks.
- Certain “cash centers”
The cash centers are usually eager to cash business checks, but they generally have a fee and need an application. With Money Center, you can get your money faster as compared to when you go to the bank. However, since this is how the center makes money, the fees charged are higher.
- Cashing Checks
You may find shops that offer check cashing services in small areas. They are usually generous when cashing out business checks, but can be expensive.
Fees charged are generally based on a percentage of the check amount and can be 5% or more. For small checks, this may not seem like much, but frequent use of this service will increase your fees.
Why a Bank Account Matters to Your Business
Opening a bank account shows customers that your business is legitimate and makes depositing checks much easier. As there are online and in-store check cashing services that do not need a bank account but are generally not recommended as a long-term financial solution.
So, whether you have a business bank account or not and you’re looking for a medium for Check Cashing, seek out the options mentioned above.