What does post dating a check mean
This procedure is to ensure proper cash flow for your business' ongoing expenses.
Let's say a contractor receives two checks today for a large citywide development project.
This way, you don’t have to worry about getting charged with penalties for being late in making your payments.
Or getting inconvenienced by having to physically or manually submit your payments on the day they fall due.
This is especially useful if you have recurring bills to pay on a specific date monthly or quarterly or any regular period.
Writing a post-dated check is a common business practice that allows a corporation to show a commercial partner, such as a lender or a supplier, that it intends to pay a certain amount at a given point in time.
Post-dated checks are pivotal elements in some business activities, such as export and import, because they guarantee payments to commercial partners.