There are several advantages to taking postdated checks in settlement of an account balance including these: 1.The fact that you are holding a check that will be presented to the bank for payment on a specific date places a burden on the debtor to have funds on deposit when the check is presented. In the event that the check is dishonored and the customer is sued, the existence of the check makes it harder for the customer to argue that the debt was never owed. Even if a post dated check is not honored when it is first presented, there is always the possibility that the check will clear at its second presentment, or that the creditor can tender the check to the debtor's bank on a collection basis.There is a down side to accepting post dated checks...If a creditor accepts a post-dated check in exchange for merchandise or services, in many jurisdictions the seller is considered to have extended credit to the issuer of that check.
I have done so, but my confusion is that she said that post dating a check is illegal.In banking, post-dated cheque is a cheque written by the drawer (payer) for a date in the future.Whether a post-dated cheque may be cashed or deposited before the date written on it depends on the country.If you won’t have the funds available at the time the check is written, you might consider postdating the check.For instance, if you’ll be out of town when rent is due, but don’t have the funds to pay rent early, you might postdate your check.
There is no exemption from payment of stamp duty on a bill of exchange if it is a cheque.