How does Cheque Payment Assurance work?
Easy and cost-effectively eSigned undertaking creates a factual evidence value of the payment being made by cheque and the genuineness of those transactions.
The Benefits of Cheque Payment Assurance for both parties:
Maintaining discipline in timely payment of cheques issued.
Bring a reasonable certainty in the due dates of payment, with automated gentle reminders sent to Drawer / Cheque Issuer.
Provide complete details of cheque payment as an additional documentary evidence to resolve the dispute / legal case.
With Payment Assurance Undertaking the payment risk is substantially mitigated.
So, we can definitely say that both parties can start to benefit when they execute a Cheque Payment Assurance Undertaking .
Why do we need a Cheque Payment Assurance?
A traditionally popular method for making payments for goods and services or for repayment of loans and debts is through issuance of cheques. However, a large number of cheques get dishonoured and retuned unpaid on their due dates which can major problems for beneficiaries / payees.
It means just because you have received a cheque does not guarantee its payment, and in fact bouncing of such cheques can even cost you additional money.
The drawers / issuers of cheques can also stop their payment or close their accounts before the due date, leading to defaults in payment of such cheques.
Legal Actions can be Costly and Cumbersome
While you as a Payee can file a law suit for dishonour of cheque, but it can take a long time to even prove your transactions and the genuineness of dues covered by the cheque in question. This can entail lengthy legal proceedings costing huge sums of money. That's where IOUX can help you.