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Business Check Ordering Guide > Can a business check be endorsed to another business?
Can a business check be endorsed to another business?
If the company and bank you’re working with allows it, and it’s endorsed properly, you can endorse a business check to another business. However, it’s best to use custom business checks as the solution to make a direct payment to the other business to avoid potential issues or tax complications.
When it comes to signing over checks, you’re discussing third-party checks. Third-party checks are either a personal check or business check that is signed over as payment to another person.
If you are the payee (recipient) on a check, you make an endorsement to sign it over to someone else, now making that money belong to the new payee.
Endorsement is a signature, and you’ll see the place to sign on the back of your personal check or business check. Be sure to avoid the “do not endorse/sign” spot, otherwise your bank will likely have difficulties processing the check.
If you’re interested in endorsing business checks, here’s the types of check endorsements:
- Endorsement in full: This includes the instructions “pay to the order of” with your (the payee) signature, signing the check over in full to the new payee.
- Blank endorsement: This includes your (the payee) signature but no other instructions.
- Restrictive endorsement: This includes the instructions “for deposit only” with your (the payee) signature, making this check only viable for deposits – and someone can’t cash it. If you also include a bank account number with this instruction, the check can only be deposited into that specific account. Also note that some banks require payees to endorse a check with "for mobile deposit only" to deposit a check remotely with a mobile banking app.
First, you’ll need to see if the company and its bank are OK with this. Ultimately, the bank reserves the right to make a final decision regarding whether this deposit will be allowed. They might have more specific requirements on necessary endorsements.
Second, is this really the best way to make a payment? It honestly can get messy, confusing, and may cause potential issues or tax complications.
A better solution is to deposit a check that has been made personally to your company into your business checking account. From there, you can use your custom business checks to write a check to the company from your account. It’s a clear-cut payment system with clear documentation.
Custom business checks are completely customized with your account details and branding. Our laser business checks save you time, money, and ensure that your organization is keeping its business finances accurate and always up to date in real time, 24/7.
Business checks are used solely for your business and come in two categories:
- Laser checks: Essential for businesses that have existing accounting software programs (like QuickBooks® or Peachtree/Sage®), laser business checks maximize this investment in a powerful way. These laser business checks automatically track spending, maintain vendor details, and create easy-access records. Not only do they help ensure financial accuracy, but they also save businesses critical time and money that matters most. Checksforless.com® ensures that our laser business checks are 100% compatible with existing software. We also provide custom business checks that fully represent your organization, including your company logo and brand colors.
- Manual checks: Ideal for businesses that need a portable way to keep track of expenses, these manual business checks are convenient and easy to use. Essential for businesses on the go, these business checks come in a variety of styles and options, notably the inclusion of vouchers.
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If you’re looking for more guidance on business checks, please visit our Business Check Ordering Guide for everything you need. You can also call us toll-free at 800-245-5775 and our teams of experts are always happy to help you with more specific questions.
We look forward to helping you with all your business checking needs!
If you’re ready to order your custom business laser checks that will save you time and money, contact us today!
This article is made possible by Checksforless.com® For more than 35 years, Checksforless.com® has provided over 500,000 businesses with high quality business checks, deposit slips, and other banking supplies with easy ordering and fast production times; all at the guaranteed lowest price in the nation. Our discount business checks are easily customizable and compatible with over 4,500 software programs including QuickBooks and Peachtree/Sage 50. Email or call us toll-free at 800-245-5775.