Sometimes creditors will receive post-dated checks that are generally between 10- 90 days beyond the date received. Whether a check can be deposited prior to the actual check date written depends on the:
- Amount – smaller amounts get deposited sooner
- Drawer – the company that issues the check
- Drawee – the bank on which the check is drawn
- Payee – the beneficiary to whom the amount is to be paid
- Payee’s bank – the beneficiary’s bank
- Relationship – good commercial customers will often obtain more flexible and preferential services
For example, the drawee may pay a check prior to the post-dated check date as long as there are sufficient funds in the account, basically treating the check as any other check.
Or the drawee (especially if it’s a smaller community bank where they know all their customers) may have a policy that they will pay the check only upon first receiving permission from their customer. The responses to submitting a check prior to the check date are wide and various.
It should be noted that depositing a check prior to the post-dated date may disrupt the balance in the account affecting the cash flow the customer was planning on having. Regardless, if you are aware that a customer/debtor is heading into a financially very difficult situation then depositing the check before the check date may be a prudent move. However, keep in mind that payments made within a 90-day period prior to a formal bankruptcy could end up being paid back as part of the reclamation process.
Nancy Seiverd, President, CMI Credit Mediators, Inc.