With all the advances made
in today's banking industry, banks still insist that you wait 3 to
5 days before you can access the funds from cheques you deposit with
them. OK......... if you have free funds (a credit balance in excess
of what you need to access) you can draw cash out or send a cheque
to pay an outstanding bill.
In the construction industry as in most small business
operations, employees require their wages in cash, each week ......
Thursday or Friday .......... no cheques or no electronic transfers
However, in say the construction industry, the bricklaying contractor
and the carpenter receive a cheque to cover progress payments at week's
end but their staff require wage payments in cash. Clear funds are
low at the bank and you cannot obtain a short-term overdraft. Your
"friendly" bank is aware the progress payment funds are
there. The funds were transferred from the contractor's bank account
to your (the subcontractor) bank account ...... but the "friendly"
bank keeps it's foot on the funds for 3 to 5 days.
Just in case!!!!!
First Fidelity Cheque cashing service ........
will pay in clear
funds 80% of the face value of a sub- contractor's progress payment
cheque into the sub-contractor's bank account within one hour of receiving
the cheque. The balance once the contractor's cheque has been honoured
will be deposited in clear funds to your account. We will deduct our
service fee from the balance at the same time we pay into your account
by electronic transfer.
some questions? Need some clarification?, ask us here