I run a small business and occasionally checks are returned due to insufficient funds. What can I do to collect?

There are several ways business owners can collect on bad checks, including calling the customer, sending a certified letter, or contacting the bank. If you run a small business and occasionally checks are returned for insufficient funds, avoid accepting and depositing checks that say “Payment in Full” or something similar. Learn more about how business owners can collect on bad checks in our legal guide below.

UPDATED: Jul 14, 2021Fact Checked

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Jul 14, 2021

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UPDATED: Jul 14, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

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