What Are Some Tips on Starting a Check-Cashing Business?


Quick Answer

When starting a check cashing business, ensure you have a large amount of up-front capital, develop a business plan, set clear policies for customers and employees, and establish a cash-control procedure. Educate employees to detect fraud, and set up security systems, advises the Houston Chronicle.

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Full Answer

Before starting a check cashing business, develop a business plan to set expectations for profits and losses and develop a marketing plan. Conduct market analysis and select a location visible to traffic and accessible to customers. Register the business as a corporation or a limited liability company to protect personal assets from potential business losses. Obtain sales tax licenses and other permits required by your county or state government, recommends the Houston Chronicle.

Select a storefront that is easy to secure and obtain general liability insurance to protect the business from robbery-related losses. Select employees who are honest and who have good customer service skills and train them. Set clear policies and procedures regarding check-cashing, money order purchases and other transactions to guide customers and employees and to avoid violating federal money laundering laws. Set up an audit system to ensure that the finances of the business balance at the end of each day. Train employees to identify customers and validate checks, states the Houston Chronicle.

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