The check, which is frequently used in commercial life, is a document that new entrepreneurs can use to regulate their payments and collections. As a new entrepreneur, do you know how to take advantage of the check and use it correctly? The check is used as an instrument of payment. Although it should be paid when given to the bank, it is also used as a term in the market. Although the reputation of the checks has decreased due to the spread of the credit card, it continues to be widely used due to the shape conditions it carries and the protective provision in the laws.
This article discusses why and how checks are used, the advantages of having a checking account, considerations when using a check account.
How to Receive a Chequebook?
The information requested to obtain the chequebook may vary by bank. However, the main information required by banks is:
- Certificate of residence
- Criminal record
In addition to these documents, the Bank expects the owner to provide financial collateral. The chequebook contains 10 pages and the bank requires a certain amount of collateral for each page. If the bank encounters a suspicious situation, such as overdraft cheque, delayed payments, the company rejects the application of the owner.
Who can Receive a Chequebook?
Receiving a chequebook may seem like a tough process. However, all enterprises that can easily obtain loans from banks and do not have any problems in their commercial transactions can apply for chequebook to any bank. You may want to pay by check, but where do you start?
What You Need to Know When Starting to Write a Check?
You will apply to your bank for a checkbook. The bank will issue a checkbook with 10 or 15 sheets after obtaining the necessary documents from you.
You may have to pay a valued paper fee for each blank check sheet.
Even if your account is not available when the customer wishes to bring the check to your bank and take the money, the bank must pay according to the law. The Bank may ask you to keep a deposit or a blocked account per check page when the Bank gives you the checkbook to secure itself. The bank may operate interest income on your blocked account. If there is no problem with your credit payments and your account transactions are regular, there is a chance that you will not have this money blocked as collateral.
Receiving a chequebook does not mean that you can have this check book accepted. If you work with the supplier, you should have at least 40 % of the cost of the work you have done. You can write a check for the remaining 60 % balance.
What is a Checking Account?
The checkbook is printed by the banks. Each page of this book contains information such as an account number, the bank where the check account is located, the tax number of the account holder, and the date the check was issued. The account that writes the information in this book is called a checking account.
Although check designs vary from bank to bank, each check will include the name of the account holder, the bank and account number to which the payment will be made, the details of the person to be paid, the amount and date.
Why is it İmportant to Collect Checks from the Bank at Maturity?
There is no maturity in the check. If the account of the issuing company is available, the bank has to pay the check amount in case the check is presented. According to the commercial requirement in the market, the check should not be collected from the bank before the due date.
Your suppliers will collect the checks you have written from the bank branch where you work. If the check is given to another bank for collection, the check will be swapped and the process may take 1-2 days. If you have a customer check, give it to the bank that is written on the check for collection will save you time.
Knowing what a check is and how it should be used prevents you from having problems with your payment and collection processes. With a free checking account, you can easily complete many transactions. You only need to pay attention to check due date issue.