Business cheques or invoices are the cash payments made by a business to another company for services or goods. Businesses generally send invoices either through direct deposit or by giving their customers a coupon book. Business cheques may be in the form of cheques, debitings, advances, trust funds and other banking instruments.
Most businesses issue cheques by credit/debit card. However, cheques can also be issued by mailing an envelope, fax or phone call. The recipient can also make payments by phone or Internet money transfer. For businesses that issue cheques, the funds are usually debited from the company's business bank account on the date of issue.
In the past, Business cheques were physical pieces of paper with a serial number for tracking purposes. In most cases, these cheques had to be presented to the customer in the same envelope as the invoice. In addition, many companies would require that the cheques were presented within a specified time period, sometimes in person, at a pre-set location. A large portion of this time was taken up by the moving and sorting of the items to be mailed.
While cheques are still most commonly issued in person, they are now issued virtually any way imaginable. For example, the cheques can be sent through the mail or by fax or Internet payment. There are even cheques available through vending machines in grocery stores. Some companies use cheques in conjunction with bank transfers.
Before the advent of electronic cheques, companies had to devote considerable time and effort sorting out the various payments due to clients and vendors. For clients, this task required contacting many different banks and taking care of the paper work. Most businesses also employed the services of an agent who specialized in taking payments from clients. This agent was expensive, since cheques had to be processed on a monthly basis. Furthermore, it took several months before the agent's commission was received.
In recent years, new options have become available. A number of companies have opened Internet sites where cheques are available to the customer. The Internet offers convenient ways for payments and many businesses are able to process debit cards. Cheques are available at any time and there is no need for the customer to place a deposit.
When paying someone with a debit card, the customer does not have to worry about depositing money into a bank account. If the card is paid over the phone, the cheque will appear on the recipient's account immediately. Likewise, if the customer chooses to receive the cheque over the Internet, he or she will be given a unique electronic cheque. These electronic cheques are processed immediately and do not require a bank transfer or a check.
Business cheques are usually paperless. They are processed by electronic means, eliminating the need for a bank to hold funds. In most cases, cheques are sent to the customer within minutes of being processed. The added convenience of online payments has made these checks an increasingly popular choice for many businesses.
Business cheques come in a variety of formats and designs. There are cheques designed for specific dates or events, such as Christmas or Easter, and others that can be used for any occasion. Some have graphics, music or advertisements printed on them. There are personalized cheques, where the owner puts his or her name and the business's address on the document. Some include personal information, such as a telephone number or the name of a customer.
Most cheques are accompanied by a cover letter. This letter tells the recipient how he or she may receive the payment and how he or she may make a payment. The cover letter also includes a time frame for receiving the cheque, the address and other information about the company and its contact details. Customers can opt to receive their cheque through regular mail or email, but many prefer to receive their cheques online so they can track them easily and keep track of when a check is late or returned as well as how much money has been paid.
Before accepting a cheque, companies should ensure that the recipient is a company client. The cheques may be from banks or financial institutions, which are not necessarily private. It is important for companies to know their clients, so that they do not accidentally accept a cheque from an untrustworthy client. There are a variety of fraudulent companies that masquerade as banks or financial institutions, offering cheques for cash that they can't legally give. These companies usually have nothing to offer but rather just take the client's information so that they can sell it to another company.
There are some companies, however, that giving out high-quality, legitimate-looking cheques. They do so because they know their clients will be able to tell the difference between a genuine cheque and a fraudulent one. Cheques come in all shapes and sizes, and there are thousands of different businesses and organizations that use cheques each year. When companies send out cheques, they want to make sure they get their money back in a timely manner. While some people know the importance of keeping track of their personal and business finances, it can be difficult to keep track of everything that gets printed and written.