Disclaimer: I did a couple of searches as instructed at the top of the forum and could not find this question asked in the past year. If it has been, please lock this and point me in the right direction, thank you. I’ve also engaged my brain. You folks are pretty tough, huh?
Backstory: So, I’ve started to go the freelance route lately as I require more flexibility with my studies.
I usually get cash for services rendered. Sometimes I will get my fee deposited into my account.
Just today, for the first time, I’m told that two local companies want to pay me by check.
So now we can get to the questions:
Checks, or more succinctly the post-dated check, are an institution here in Taiwan from what I understand, but I am a little wary of them all the same. If you do freelance work of any sort, do any of you accept payment by check, and if you do, is there anything you can do other than trust the company and your belief that their check won’t bounce? I imagine there are little to no fees for bouncing a check here and I will be left with little recourse if, in fact, a check does, er, bounce.
Is there some sort of credit rating or finacial clearinghouse I can contact to see if a company is reputable and I won’t have any problem accepting a check? I am guessing not, but it would be nice.
Can individuals like you and me (i.e. non-companies, non-incorporated people) receive checks as payment and deposit them into a regular bank account easily?
Is there anything else I should know about Taiwanese checks?
I’m probably going to argue that since there is little security, especially given my position as a freelancer, I will only accept cash, or I won’t take the case…I’m just interested in any of your experiences with this. Thanks in advance.
Sorry, I can only answer number three. Yes, an individual can receive checks. I have received checks for freelance work for over three years now (but that company has just started doing direct deposits). Never had a problem with them clearing, and it takes two business days for me to have the money in my account if it’s a different bank that issued the check.
I’ve received some cheques for free lance work a few times long ago, back in the dark days when I didn’t have an ARC, I asked my wife (then girlfriend) to clear them at the bank … no problems.
I’ve received checks from some companie for freelance work, and I haven’t had a problem. As braxtonhicks said, though, the checks usually take at least two days to clear.
OK. This is what I’m after. More info please, Mr He. No holding back.
I’m told two weeks from one company and a whole month from another, so I am a little suspicious. Waiting for opportunity to hit table and say Don’t play me like that!
You can go to a dodgy credit company and borrow against the check, if need be.
That said, I don’t know what they will do to you if the check bounces - paying back or get visits from shady types, I should imagine.
When using postdated cheques, the objective is either to preserve cash which is a commendable goal for every business, or it is to pay something you can’t afford yet, hoping that you will be able to afford it once the check matures.
I would as a free-lancer therefore be a bit vry of the whole thing, after all your payments should be small in the whole scheme of things for them.
Yeah. I hear ya, Mr He. The company must be falling on hard times, as the payment will probably amount to only ten grand or so, and I’ve heretofore been paid in cash. So I’m suspicious of the change (have I already mentioned this?) nevertheless, I like to think my relationship with the company in question is a good one, and they won’t knowingly wrong me…then again, what can you be sure of these days?
Yeah. I hear ya, Mr He. The company must be falling on hard times, as the payment will probably amount to only ten grand or so, and I’ve heretofore been paid in cash. So I’m suspicious of the change (have I already mentioned this?) nevertheless, I like to think my relationship with the company in question is a good one, and they won’t knowingly wrong me…then again, what can you be sure of these days?[/quote]
Go back to them and tell them that it is “not convenient” for you to accept cheques. Payment terms are negotiable.
Postdated cheques are a Taiwanese way of saying “30 days net” etc. It is not uncommon at all, but if you are no happy with it, negotiate.
I have to accept cheques all the time for business here. It is important to note that they do work differently to in most western countries. If you have a cheque bounce 3 or more times here you basically get a zero credit rating or something like that and the banks will not let you write any more cheques. In 4 years of doing business here and getting maybe an average of 10 or more cheques a month only one has ever bounced on me. More than once I have experienced customers who were franticly trying ot stop me from banking the cheque on the date for which it was written because they knew it would bounce. Generally speaking cheques here are not anywhere near as risky as in western countries because of the relation to one’s credit rating. What you need to be wary of is the date on the cheque. I have had customers try to write ridiculously long into the future ones (eg 180 days…).
As a freelancer and a foreigner, I would NOT accept checks unless it was a last resort. Taiwanese checks are almost invariably post-dated, and good luck to you if the company decides not to pay them.
The best strategy if you are stuck with post-dated checks is to open an account at the same bank on which the checks are drawn and deposit them all up front. The bank will automatically “cash” each one when it comes due. This at least prevents the issuer of the check from claiming poverty (the bank knows how much is in the account up front). However, be aware that if a check is dated, say, June 1, the bank will only notify the writer of the check that there is not enough money in the account at the close of business on June 1, unless you go in, say, at 9 am and make a lot of noise about how you want to cash the check. In the case they will call the company, which then has until the close of business to make good on the check.
I made some inquiries about selling postdated checks to a “dodgy credit company” and I wouldn’t recommend it based on the advice given me by several randomly-selected taxi drivers (who seem to know about such things). Apparently, you as the person who sold them the checks are somehow responsible for whether or not the checks can be cashed (sounds weird as the company is taking a big cut for assuming that risk in the first place) but I was advised not to do it as there might be personal risks to me.
That being said, I worked “freelance” in Taiwan for about 8 years and was only paid by check ONCE (and a memorable series of postdated checks and flimsy excuses every month it was). I see no reason why any company should not pay you directly in cash by bank transfer, or in cash in an envelope. But then again I don’t know how much money you’re talking about. Any protestations about the “accounting system” requiring checks are likely bunk, especially if they’re post-dated (well, the accountant might need more time to borrow money to cover the check).
I’m concerned that you mentioned in a subsequent comment that this is a move from cash/transfer payments to cheques. Mr. He has hit this one on the button; be wary.
Cheques are handled very efficiently in Taiwan and will clear faster than in many Western banks. Anyone who tells you that cheques take 2 weeks to clear is lying, and don’t be afraid to make it clear that you know just how long it really takes to cash a cheque.
It is my company policy that we NEVER accept postdated cheques as they generally belie a dubious financial position on the part of the client. I don’t have a problem with cheques per se, but another policy is that two bounced cheques in any 18 month period results in immediate revocation of all credit facilities. This is made clear to all credit clients on signup.
Now we’re in the age of e-banking and all that jazz, I find the only companies who pay by cheque - either British or Taiwanese - are either very old fashioned or have such a tenuous bottom line that they use the extra cheque clearing time as credit to stay afloat. It’s generally pretty obvious which are in the latter category, and these companies get very strict terms and constant nagging for payment.
Bear in mind that many struggling small businesses who can’t afford to pay all the creditors tend to pay what they can in order of importance and ‘nag factor’. Therefore, phone&electricity come first, followed by important suppliers, followed by suppliers who are just good at credit control. Weedy small businesses who don’t nag and appear soft are right at the bottom of the food chain.
If you don’t have a solid contract with this client including credit terms, then I would suggest that you work on a PRO-RATA basis ONLY. In other words, the job must be paid up before any work is done or goods are supplied.
[quote=“jake on that site”]I usually get cash for services rendered. Sometimes I will get my fee deposited into my account.
Just today, for the first time, I’m told that two local companies want to pay me by check.
[/quote]
The only reason a check would take two weeks to clear is that it is post-dated.
Otherwise it will take 2-3 days to clear after you deposit it in your own bank account.
If, however, you have an account at the same bank from which the employer wrote the check (i.e. the employer’s bank), then it should clear immediately.
Also, if you don’t have an account at the same bank from which the employer wrote the check it is still possible to take the check to that bank and cash it immediately. BUT it needs to have an extra stamp stamped on the front. (Sorry, don’t know what that stamp is called…)
All said, I wouldn’t worry about a check bouncing, as that’s very rare. It’s simply an inconvenience to have to wait…and if they’re post-dating the check, well, then they’re just playing silly games with you. These games, although silly, are rarely fun.
Thanks for your advice, all. You folks are a wellspring of information.
Thought I might provide an update. I did receive a check for some editing work and yes, it was post-dated January 20th or something. I figured I had waited a few months for payment anyhow, I wasn’t going to worry about another two weeks. So, I went to China Trust where they have this great automated machine where you can endorse the check, put it into an envelope, write your account details on said envelope, and insert it into the machine. Out spat a receipt and I thought I was good to go.
Until yesterday when a rep from the bank calls me up and says that there is a problem. The way I endorsed the check–my signature–looks different from the way the party issuing the check wrote my name (in the “pay to the order of” part). I tried to explain to them that the name on the check was the name I signed, I am depositing it into an account the name of which is the same as that on the check, and they have about a dozen copies of my signature at their branch in Gongguan where I opened the account. I couldn’t believe it. My signature did not look like the name that the check was made out for so I had to copy the way they wrote my name!
I tried to explain for a second until I told myself to stop. There’s no point explaining to a teller how a checking system “should” work. Her argument was that the issuing bank (where my client has an account–An Tai Bank or some such–in Ban-Chiao of all places. Ban-Chiao!) would not be able to decipher the signature on the back and make the connection that it’s the same as the person on the front. When all they should have had to do is look at the name of the acct the check is being deposited into and see that everything was correct. I still can’t make sense of it.
Anyway, a bit of a rant there. It’s all so silly. My first experience with a check, having to change my signature in order to endorse it “properly” and still having to wait a couple of weeks to have the money credited to my account. I don’t think I’ll be taking more work from them if it’s to be paid by check. I’m not too fond of this emoticon, but can see where it can come in handy: :loco:
[quote=“jake on that site”]Thanks for your advice, all. You folks are a wellspring of information.
Thought I might provide an update. I did receive a check for some editing work and yes, it was post-dated January 20th or something. I figured I had waited a few months for payment anyhow, I wasn’t going to worry about another two weeks. So, I went to China Trust where they have this great automated machine where you can endorse the check, put it into an envelope, write your account details on said envelope, and insert it into the machine. Out spat a receipt and I thought I was good to go.
Until yesterday when a rep from the bank calls me up and says that there is a problem. The way I endorsed the check–my signature–looks different from the way the party issuing the check wrote my name (in the “pay to the order of” part). I tried to explain to them that the name on the check was the name I signed, I am depositing it into an account the name of which is the same as that on the check, and they have about a dozen copies of my signature at their branch in Gongguan where I opened the account. I couldn’t believe it. My signature did not look like the name that the check was made out for so I had to copy the way they wrote my name!
I tried to explain for a second until I told myself to stop. There’s no point explaining to a teller how a checking system “should” work. Her argument was that the issuing bank (where my client has an account–An Tai Bank or some such–in Ban-Chiao of all places. Ban-Chiao!) would not be able to decipher the signature on the back and make the connection that it’s the same as the person on the front. When all they should have had to do is look at the name of the acct the check is being deposited into and see that everything was correct. I still can’t make sense of it.
Anyway, a bit of a rant there. It’s all so silly. My first experience with a check, having to change my signature in order to endorse it “properly” and still having to wait a couple of weeks to have the money credited to my account. I don’t think I’ll be taking more work from them if it’s to be paid by check. I’m not too fond of this emoticon, but can see where it can come in handy: :loco:
Thanks for reading.[/quote]
Yes - your ‘signature’ must be a duplicate of what is written on the the cheque - if FRED NURK on cheque: you write FRED NURK in block letters, not your signature. I’ve had to do the deposit slip again on my first attempt to deposit a pay cheque. My employer wites payday-dated cheques and the are liquid in 48 hours after deposit in my bank, if I were to open an account at my employer’s bank they would be liquid on deposit. Now don’t let’s talk bout how they can’t spell my name… :fume:
after years of this, i switched and have had great success with writing both - a signature, and block letters - on any sort of check received (and the same at the bank i use).
never seem to have any problems. maybe it will work for you.
