Don’t Start Celebrating Until the Check Clears! (Part three) What if the check bounces?

What do you do if your customer’s check bounces (that is to say, is returned for “not sufficient funds” (NSF))?

Well, the first thing to do is hope is that Jane’s telephone has not been disconnected! (This Checkhappened to me once and really ruined my day.)

Even if the phone is still connected, you should immediately be suspicious of this company.  In my opinion, there are no good reasons for bouncing a check – especially if you’re in business.

Read more

Don’t start celebrating until the check clears! (Part two) How long do I have to wait?

Just because you have received your customer’s check, it does not mean your troubles are over. The title of this blog says it all: Don’t start celebrating until the check clears!

NSF checkIn case you don’t know, there is a period of time after you deposit a check in which the bank makes certain that the funds are actually available to be deducted from your customer’s account.

Back in the Stone Age when I was starting out, this used to take 7-10 days.  If there are not sufficient funds (NSF) in your customer’s account, the check will not “clear” and will be returned to you.  The amount of this check that you thought was deposited into your account will not be there.

Read more