Business

Educating the small business handler to check his checks

Most multinationals have such mechanisms in place. If there are such large scale companies that haven’t then they have a policy in place that rejects the acceptance of checks outright. A greater number of small to medium sized companies already have such policies in place along the lines of would be customers and business associates having to read carefully that no checks will be accepted forthwith. The layman would have seen such notices a great many times down at his regular grocer store.

The historical reasons for rejecting checks are understandable but unfortunate. Today, they are not even necessary. It remains the case today that still far too many fraudulent checks are being issued and checks are being overdrawn by highly indebted consumers, resulting in the consequential loss of income, even more than the established value of the original check. The small business handler, however, remains in an unfortunate quandary.

He is not always in the invidious or healthy financial position to reject checks outright. He still feels the need to chance his arm. But the losses are even greater for him when a fraudulent or bounced check is returned. Today, he can rest easy in the knowledge that not even his specialized small business check collection service will be taking any risks. Part of this welcome enterprise entails passing that risk and cost to the banks that allowed such damages to occur in the first place.

Apart from acquiring such necessary services, the small business handler is better positioned to educate himself on avoiding all similar pitfalls for good. He is given the necessary tools to defer such detection responsibilities onto his outsourced check collection handler. Having such a service on board can be likened to a risk-free business investment.