Yesterday in my e-mail, I got a question from a regular LiP reader. His question was on the topic of banking. I won’t share his name, but that is not important anyway.
Let’s look at his question and my answer to him, as that may be beneficial for other readers as well.
Bob, hoping you can give me some insight if you have time. I have several corporate checks mailed to me in my business name and am wondering if I have the mail forwarding service use I to forward my mail to the Philippines, will the banks there process (deposit funds upon clearing) these checks which are from the USA if i deposit them in my Philippine account? Have you done this? Is this an issue being made payable to my business? How long does it take the checks to clear?
Any insight would be helpful. Thanks.
I have some experience with this, actually, except one aspect. Back from about 2002 until 2007 or so, I ran an eBay business from here. As part of the business, I would accept Paypal, or I would accept personal checks. I had (and actually still have) an address in the USA where mail could be sent, then that mail would be FedExed to me once per week. So, every week I would get a pile of checks, even though most people payed via Paypal. Each week, I would deposit those checks into my Philippine Dollar Account.
When I deposited the checks, they would take normally about 45 days to clear. I believe it was 30 banking days, which usually meant about 45 real days (lots of holidays here!). The system worked pretty good for me, with only one real problem. If a check bounced, there was not a whole lot I could do. I mean, if it was a serious amount of money, I could have hired a collection agency, but if you are talking $50 or less, even $100, it isn’t worth messing with. Other than that, no problems. And, not that many checks bounce anyway, so no biggie.
Now, the problem for you is the business name. To be honest, I don’t know the answer. Perhaps you could get an account here in your US business name, I am not sure. But, I suspect this is a problem.
Here is one other possible solution too… Before I started depositing those checks into my Philippine account, what I used to do was that that pile of Checks would come to me via FedEx weekly. Then about once every two weeks, I would FedEx them to my bank in the USA for deposit. That worked great. Only downside is that holding the check that long before deposit will lead to more bounces, and also there is additional cost in sending them back and forth via FedEx.
Hope this helps.
And, I hope this helped some other readers too.