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Corporation w/ Multiple Trade Names

Question: 
I have a corporation that has multiple trade names. They already have one account set up with a single trade name. Should we require them to open a separate account for the additional trade name? Alternatively, can they just add it to the current account and we can redo the documents? Is there any risk to the bank to have multiple trade names on one account?
Answer: 

Your bank guarantees every endorsement on every check deposited to this account. If you allow a single entity to deposit checks to multiple payees (all DBA's) you assume a significant amount of risk. (You are also helping your customer avoid the charges it might incur if you required individual accounts.)

The only thing that would prevent your institution from allowing this is your own policies. The "Threads" have seen a fair number of conversations on this point and some banks do allow it... I would not.

First published on BankersOnline.com 7/4/11

First published on 07/04/2011

Filed under: 
Operations
Filed under operations as: 
Checks
Endorsement
IT

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