- It is less tiresome to write a cheque than counting large sums of money.
- It ensures accuracy of payment since mistakes made in counting large sums of money are avoided.
- It is a safe method of payment since it cannot readily be stolen and used by a thief more so when it is specially crossed.
- It acts as a record of payment since the details of payment are recorded in the counterfoil for future reference.
- It acts as a proof of payment because when payment has been effected by the bank, it is cancelled to evidence that payment has been done.
- It is easier to carry a cheque than carrying large sums of bank notes and coins.
- It can be used to pay many employees at once by using one cheque through credit transfer system.
- A crossed cheque can be sent safely through the post office compared to cash hence debts can be cleared by posting a crossed cheque to a creditor.
- It can conveniently be used to effect deferred payments by issuing a post dated cheque to a creditor.
- It is easier to store a cheque than cash since cheques take a small space.
- Payments can be stopped where fraud is discovered by the drawer instructing his bank not to pay.
RELATED POSTS
One thought on “11 Advantages of using a cheque as a means of payment”
Comments are closed.