How to Cash Vendor Checks
No matter what the nature of your business, keeping cash flowing is essential. When your vendors and clients make their payments, you want to get your hands on that money as quickly as possible and use those funds to run your business more effectively. Knowing how to cash your vendor checks will help you make the most of your cash flow and ensure that there is always sufficient capital on hand to run your business.
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Instructions
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Look at each check and make sure it is made out to the name of your business. If you operate your business as a sole proprietorship, the check should be made out to you.
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Visit the bank where you have your business checking or savings account. Most banks will not cash checks for noncustomers.
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Endorse the back of the check, using your name as an authorized signer on the account. Make sure you sign your name exactly as it appears on the account registration, i.e. John A. Smith instead of John Smith.
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Give the endorsed check to the teller and say that you want to cash the check. Depending on the balance in your account, you might not be able to cash the entire amount. Some banks place a hold on checks if the account balance is low. For instance, if the balance in your business checking account is only $50 and you want to cash a $500 vendor check, you might be permitted to cash $50, with a hold on the remaining $450 until the check clears.
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References
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