Endorsement letters to banks are common, and should include all the details that are required by the bank. These details are as follows:
This is vital as it indicates that the bank the letter is addressed to is the one that the customer is dealing with.
The routing number should be included as this nine-digit number indicates the branch of the bank; each routing number is specific to a branch of a bank.
This indicates that all checks that are paid in cannot be cashed and specifies that they are for deposit only.
This is vital as any checks should be payable to this company name. The exact company name should be provided on the letter and if the company is a limited company then the word Ltd should appear after the company name. It should be the exact name of the business that was registered.
This number is found on the bank statements the company receives from the bank, and is vital to ensure that any payments are made into the correct account.
Endorsement letters are frequently used by businesses, and some companies use endorsement stamps, which should be set out in exactly the same way as the letter.
The letter should always be written in simple terms and should request the endorsement; with reasons for the request. The letter should be mailed to the bank manager and a stamped addressed envelope should be included so that the bank can send you the letter back, if it is approved.
- The name of the bank that you normally pay checks into
This is vital as it indicates that the bank the letter is addressed to is the one that the customer is dealing with.
- The routing number of the bank
The routing number should be included as this nine-digit number indicates the branch of the bank; each routing number is specific to a branch of a bank.
- The statement "For Deposit Only"
This indicates that all checks that are paid in cannot be cashed and specifies that they are for deposit only.
- The legal name of the company
This is vital as any checks should be payable to this company name. The exact company name should be provided on the letter and if the company is a limited company then the word Ltd should appear after the company name. It should be the exact name of the business that was registered.
- The bank account number
This number is found on the bank statements the company receives from the bank, and is vital to ensure that any payments are made into the correct account.
Endorsement letters are frequently used by businesses, and some companies use endorsement stamps, which should be set out in exactly the same way as the letter.
The letter should always be written in simple terms and should request the endorsement; with reasons for the request. The letter should be mailed to the bank manager and a stamped addressed envelope should be included so that the bank can send you the letter back, if it is approved.