Dealing with bounced checks in your business, especially if you own a small business, can really influence your bottom line profits. Letting returned checks pile up on your record is never a good idea whether you’re the business or check writer. If you have several payers in default that owe you money for the service you provided, the effects of NSF checks can cause many unwanted road bumps in your finances.
Bad Credit for Everyone Involved
Whether it’s a legitimate mistake, an issue with funds, or fraudulent activity, both the payer and business’s credit rating may take a turn for the worse when a bounced check is written and processed. This situation can be particularly risky for small businesses; where there may not be a full-time accountant employed and the individual managing the finances may not be educated on collecting on NSF or bounced checks. For those with less education in proper accounting or who are simply bad with numbers, attempting to keep track of your business’s finances on your own can be overwhelming. Hiring a third party check recovery service such as Global Check Recovery takes the weight off your shoulders and ensures any late payers are dealt with head-on.
Banks Can Be Slow
Though banks generally have a system in place to protect you during such circumstances, they can be slow to act on their policy and can even conduct their check recovery in an incompetent manner. The longer these bounced checks and insufficient funds sit on your account record, the more you and your customer can be penalized for them. Depending solely on the bank to address these could mean running the risk of overdrawing your business account if you’re dealing with more than one bounced check at a time.
Showing Profits at a Loss
The last thing you want for your business is for your profits to be locked up in unrecovered NSF checks. You’ll risk losses to your annual income and can even run into difficulties when it comes time to complete your business’s taxes. Take back your finances by implementing a check recovery solution from Global Check Recovery. We can help you recover bounced checks with a fast turnaround on collections and sufficient recovery of your funds.