The owner of a small cleaning business lodged a number of cheques into her business bank account. Unfortunately she failed to make sure the cheques had actually cleared before writing cheques for her employees’ wages. She believed she’d left plenty time before writing her salary cheques.
The results were disastrous. The cheques bounced, which meant her employees hadn’t been paid. This started a panic with staff telling her customers that they thought her business had gone bankrupt. It might as well have done because staff were now unwilling to work and customers’ offices not cleaned.
It was difficult for her to rebuild her business but she did. The bank, as you would expect, dismissed her complaint telling her that it was her responsibility to ensure she had sufficient funds in her account prior to writing her cheques. Her argument was that her cheques had taken an extraordinarily long time to clear.
Situations like this can arise when you run your own business so it’s important that you choose a bank that you are comfortable with, and most importantly that you have a named contact in that bank who you can speak to and is familiar with your business.
So what do you think about that?
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