Endorsing a single business check is not that much different than endorsing a personal one. Hence, if you have prior experience doing it with a personal check, it follows that it will not be that hard for you anymore to do it with a business check. Though this can be the case for you, it is still important to review the proper ways to do it. You must know that a simple mistake will often result to an unprocessed check. So here, take note of these steps on how to endorse your business check:
- See the reverse side of the check. At the other side of the check, you will see there an instruction that says, "sign below the line" or any equivalent. This is where you need to indicate some information about the business and also about yourself.
- Provide necessary information. Write the complete and correct business name and affix your signature below it. However, if the customer, for example, has incorrectly written the business name, write it the same way at the reverse side of the check and write the correct name beside it. The signature will follow below the business name as usual.
- Sign the check. Write the business name together with your signature the usual way at the other side of the check.
- Add account number. A restricted endorsement is used if you rather want to deposit the check than to cash it. Hence, at the reverse side of the check, add the phrase "For Deposit Only" right below your signature. Another way to complete a restricted endorsement is to write "Deposit to Account" followed by the account number.
Third Party Endorsement.
- Write the third party's name. A third party endorsement of the business check means you are turning it over to another person or business. The person or the business representative has the option to deposit or cash the check by himself. To do this kind of endorsement, write the phrase "Pay to the order of" at the other side of the business check together with the third party's complete name.
- Affix business details. Like other types of endorsement, write the business name as well as affix your signature below the full name of the third party's name.
- Use an endorsement stamp. This is helpful for you if your business is receiving a lot of checks every now and then. However, before ordering a stamp, talk with the bank first. The stamp must follow the requirements of the bank to ensure that you will not have any trouble about endorsing business checks in the future.
- Stamp the check. Use the stamp at the back of each check that must be endorsed. However, it is important that you use caution when using an endorsement stamp. It must be limited to restricted endorsements only to ensure that even when the stamp is stolen or is lost, you will find no problem your business checks.
Though quite similar, there are still some minor differences when it
comes to endorsing a business check than that of a personal check.
Hence, to make sure that your business will find no problem in the
future, always keep these steps in mind.