Getting my company cheque cleared or cashed

F

ferrari06

Guest
I own my own limited company and have been paid by a client today through business cheque for an outstanding amount that has been outstanding for nearly 6 months. I am worried that the cheque may bounce and the bank we use takes 5-7 working days to clear cheques where as my personal account clears them straight away.

Q> Can I sign the cheque over to my personal account or will I have to lodge it in my company account???
 
Go to the bank where the cheque is drawn on and lodge it to your company account, it will take a few days longer to show up in your account but it will be taken out of your clients account straight away - (you can always ask if it will clear when you are there in the branch).

You can always try ringing the bank to enquire if there are funds to meet this cheque before you travel to the branch if its not near - you will have the bank account details on the cheque.

Good Luck

(I would be very surprised if your personal a/c clears cheques straight away)
 
Thanks for the reply NHG, I will give that option a go and see what happens, Strangely enough cheques do go through immediately to my personal account and the funds are always available immediately, This is only for company cheques and not personal ones.

Thanks

D
 
Ferrari06

As a former bank manager, who also worked for the clearing system, and as editor of , I think that I can definitively answer this one.

1...You cannot lodge cheques which are payable to the company to your personal account in any circumstances.
2...There is no actual difference between the clearing arrangement for your personal and business account. It just appears that way. If the cheque is drawn on a branch of the bank in which you hold your account, then the cheque will normally be presented to the payers account on the same day which you lodged it. The payers bank must respond by close of business on the next business day, if they are bouncing it. That response should take 1 day to reach your bank, and one further day before it gets to you. If the cheque is drawn on another bank, then the whole procedure may take up to 2 days longer.
3...The two accounts appear different because it is likely that your bank has set up your personal account to give you access to funds when a cheque is presented, but your business account is set up to give you access when cleared. Either way, if the cheque bounces, the bank will charge the bounced cheque to your account (plus a fee)
4...If you present the cheque at the payers branch, with a credit transfer, and they accept it, then the cheque can normally be considered as paid. The payers branch is under no obligation to accept it in this way, however
 
bank the cheque is drawn on won't tell you if there are funds to meet it, that would be a breech of their customers right of confidentiality

if you don't bank with the same bank as the one the cheque is drawn on, they are under no obligation to accept your lodgement as it becomes what is known as a 3rd party lodgement and they could be liable if it bounced

Even though funds may be available more or less straight away after the cheque is lodged, it doesn't mean it has cleared and the bank has the right to debit your account back over the next week or so if it bounces
 
a company cheque can only be lodged to the companys' bank account.no bank could or should lodge it to your personal account as there is no way of endorsing a company cheque to another party,you can however take the cheque to your bank and ask for it so be sent for clearing,this does not mean lodging it and there is a lesser charge for doing so.no bank will be able to tell you if the cheque will clear as like the pevious poster said it would be in breach of consumer protection code.
 
Well the bank gave me information that they should'nt last week so, and it was'nt my own branch, it was where the cheque was drawn on.
 
Mpsox said:
bank the cheque is drawn on won't tell you if there are funds to meet it, that would be a breech of their customers right of confidentiality
Click to expand...

They may not tell you over the phone, they may not tell you to your face, but if the cheque bounces and comes back marked "insufficient funds" where is the right of confidentiality?
 
You could ask your bank to put it out for collection which would get you immediate credit toy our account. Bank's hate doing this and will charge you approx €75 for doing it.

Ferrari06 sorry for breaking in to you Post.

Gulliver, as an ex Bank Manager if I may interrupt this post and ask you a question. What happens if a Bank doesn't send a statement for a Loan account which was set up approx. 8 years ago. I have made payments against the loan but have stopped (2 years ago) until I receive a statement. Interest is no longer been charged by agreement with Bank about 5 years ago because of their mistake but nothing received, statement or anything else. Please let me have your comments.

Thanks - Mercman
 
Take the cheque to the bank where it is drawn and ask for a bank draft for the same amount, same payee etc.
 
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