Need to endorse a check from your company, but don’t know how to do it? Well, I come to the indicated post to learn how to endorse a check to deposit. Here we explain what it is and how to endorse the check to be issued in a simple and easy-to-understand way for you.
How to Endorse a Company Check for Deposit – Step by Step
- What is a check?
- Characteristics of a check to deposit
- Learn how to endorse a check for deposit
What is a check?
It is a commercial document that is used as a means of payment, which is still used today in many international and national banks. Checks are issued and signed by a person, with the aim of paying an amount of money in a bank to whom it is addressed. The sender can be a person, company, local or other entity that demands or requires it to release the funds in question.
Advantages of using a check
Next, we show you what benefits you can extract by using a check to make your payments or financial movements exactly.
- You have the power to choose the financial institutionwhere the check will be deposited.
- You can avoid having to handle or use cash.
- They can be issuedat any time that warrants it.
- Checks are covered by law, having coverage for uncashed checks.
Now that you know what a check is and the advantages it offers you, we explain how to endorse it so that you can deposit it.
Characteristics of a check to deposit
Before going on to explain how to endorse a check, we want you to know some fundamental aspects that go into a check.
- Drawer or issuer: It is the person who proceeds to make the payment of debt or services .
- The drawee or the one who issues the money: It is that financial institution that releases the money exposed in the checkby the issuer.
- Recipient or beneficiary: It is the person who receives the checkwith the amount and the signature of the issuer or drawer of the money, to collect it.
On the other hand, there are different types of checks and we briefly show you what they are so that you can identify them and thus know how to use them.
- Cross check.
- Check to order.
- Check to bearer.
- Nominal check.
What is a check endorsement?
It is the remission of the property or the authorization that a person has to assign the dispatch or withdrawal of the money written on the check. Of course, it should be noted that not all checks can be endorsable, since there are some that cannot be transferable to third parties.
Learn how to endorse a check for deposit
The person who receives the check and signs it on the back for someone else to withdraw the money is called an endorsement. The endorsement is the signature of the person who authorizes the withdrawal to be collected, which is mostly accompanied by their identification number.
- Data to endorse a check and deposit it.
- Check endorsements: In this section you must put the word “only for deposits” that is at the top of the check with the account number.
- Name and address: Generally these data are already provided by the financial institution that issues the checks.
- Date and time: In this section, you must state the date on which said check is issued and, if necessary, enter the time it was issued.
- Name of the beneficiary: Here in this section you must write the name of the person or company to whom the check is addressed. In the event that the withdrawal is made in cash, you must state that this will be the case by writing the word “Cash”.
- Entity Name: Enter the name of the financial institution or bank .
- Note or memo:This session writes some reason or reason why the check is withdrawn.
- Signature or signature: On this line you must write your signature and the bank’s authorization to make said withdrawal.
- Account number: Here the account number is written, this serves to indicate to the bank where the money is extracted.
Note: When filling out and endorsing the check, try to use a pen of the same color and write clearly.
We hope this article with educational and intuitive purposes will be of great help to you when endorsing a check from a company.