Why we should not cash checks payable to businesses

Answered by:

Question:

Why do we tell our tellers not to cash checks payable to businesses that bank with us?

Answer:

There are several reasons that cashing such checks is a poor business practice. In some cases, the bank could be liable for the amount of the check, even if it’s paid by the paying bank. Creditors of the business or its owners could take legal action against the bank.
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