Whether your business is classified as a sole proprietorship, an LLC, or a corporation, you will likely need to handle financial transactions. Despite the general notion that a bank is the best place to manage business cash, many business owners have discovered the benefits of utilizing check cashing stores instead of, or as a supplement to, a business bank account.
Consumers have long known the benefits of using a check cashing store in lieu of a bank account. A customer can go into the store with a check and come out with cash, with no hold periods and no hidden fees. Business owners have followed suit, becoming fond of the numerous convenient benefits offered. From wire transfers to prepaid cards, these stores offer much more than check cashing services.
Here, we will explore some of the major benefits of using a check cashing store as a business owner.
Convenience and Flexibility
For busy small business owners, time management can be challenging. While juggling multiple responsibilities, business owners put in long hours. This leaves little time for standing in long bank lines or even making it to the bank before it closes for the day. The convenient locations and flexible operating hours of check cashing stores are two of the main draws for busy business owners.
Most check cashing stores have multiple locations in major cities, are open on evenings and weekends, and stay open much longer than banks. Some are even open 24 hours a day. Banks simply cannot compete with this level of convenience.
In addition, banks often impose complex rules for personal account holders who want to cash checks, and these rules are often even stricter for business owners. Banks often place holds on checks based on the amount that the bank the check is drawn on as well as the type of check. For a business owner, these delays could cause significant problems, such as not being able to make payroll on time or the inability to pay vendors. Business owners also have to contend with daily cash limits enforced by banks. Not only that, but holds may increase the likelihood of incurring non-sufficient funds (NSF) fees if the hold is in place when certain payments are debited.
A check cashing store, on the other hand, allow business owners to access cash right away - with no holds and with fees that are upfront and clearly posted. The business owner simply brings their check(s) in and they are able to get cash on the spot and handle their business-related financial obligations hassle-free.
Ready Access to Cash
In some cases, business owners need access to emergency cash, and check cashing stores are more than able to meet this need. At other times, a small business may be in need of a short-term loan to cover various business-related expenses. Unfortunately, banks have been less and less inclined to loan money in recent years.
As a result, business owners do not have a lot of options for small value loans. Check cashing stores specialize in offering short-term loans and the criteria are clearly posted. Most individuals and businesses qualify for cash advances with a simple application and proper identification.
Additionally, business owners may prefer to do business with a check cashing establishment instead of a traditional bank in order to obtain ready access to cash. For cash-based businesses, accepting payments via check can present an inconvenience. This is particularly the case if your business relies on cash for small purchases or needs to have cash on hand for customers’ change.
In the latter scenario, small business owners can take larger bills to check cashing stores. The employees at these establishments are more than happy to exchange these bills for smaller denominations.
Better Options for Employees
Not only do check cashing stores benefit business owners, they are also a way for business owners to manage employee payroll. For employees who prefer to be paid via paper check, finding a bank that will cash their check without inconveniences like holds, limited hours, and unnecessary hassles can be quite a challenge.
Check cashing stores can alleviate this frustration by cashing a several types of checks for customers with no hoops to jump through. For employees who work nontraditional hours, check cashing stores are often the best option, as banks are usually closed when these employees aren’t working.
In recent years, many employers have realized the ease and convenience of paying their employees via prepaid debit cards, particularly those that hire temporary, seasonal, or part-time workers. Many Americans do not have bank accounts - as many as 5 million millennials according to a study conducted by the Center for Generational Kinetics and Global Cash Cards - so offering alternatives for sending and receiving money is critical.
Prepaid payroll debit cards work similarly to direct deposit to a bank account, but the funds are loaded directly to the debit card rather than sent to a checking account. Prepaid debit cards often have an associated routing and account number that can be used on the employer’s direct deposit form.
Employees can find a reloadable prepaid card online, or they can visit a check cashing store to purchase one in person. Some employers have a specific payroll debit card that they provide to their employees. Others allow employees to select their own prepaid cards, and the employer simply deposits their paychecks accordingly.
Business owners have embraced the variety of benefits offered by check cashing stores, and they are mimicking the behavior of individual consumers by patronizing these establishments. From excellent customer service to flexible operating hours, check cashing establishments ensure that business owners will no longer have to worry about how to fit financial transactions into their busy schedules.
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