Small Businesses Must Adjust to Check Float Changes
From The Business Journal of Milwaukee:
"Federal legislation that goes into effect Oct. 28 and aims to streamline how banks clear checks means business owners will have to be more cognizant of having funds in place to cover checks...
The Check Clearing for the 21st Century Act, otherwise known as Check 21, requires banks to clear checks electronically rather than sending paper checks through the mail to settle accounts. As a result, the time between when a business or individual customer's check is issued and cleared by the bank, known as the 'float,' will be reduced from a period of several days to one day or less...
'Some people will have to change the way they do business. You have to have money in your account before you write a check'..."
