I'd like to take some sort of payment that I can be confident of being able to cash/pay in if necessary, but most likely won't want to cash it at any time. I'm trying to remember how this was done... cheque with card number t hat I don't pay in unless necessary? How can it be done?
thanks NT
Sounds like a job for some sort of escrow provider; a trusted 3rd party outfit like this maybe:
Course, in the old days, it was so much simpler with post-dated cheques and whatnot.
As I posted in u.l.m a cheque can be cancelled ("stopped") for a modest cost without the holder knowing.
Trouble with escrow is the buyer/borrower has no money now with which to pay, and if this payment is required to be paid, which is unlikely, there is likely to be disagreement.
NT
Why don't you just explain properly what is going on?
Does the buyer have some item of value you could take in as a deposit?
o pay, and if this payment is required to be paid, which is unlikely, there is likely to be disagreement.
No. It's unlikely to need to be paid, but might need to be in who knows how many months' time. I can live with the small risk that they then have no m oney, ie they're creditworthy. The amount involved is £250. If payment ceased to be possible after 6 months that would be not ideal but livable w ith, but a cheque that can be cancelled tomorrow is not much use.
What's the deal with a counter issued cheque from their bank?
NT
...and months later
Jew mean a Banker's Draft or whatever it's called? Made out to you so only you can cash it? That's no different from cash - the other party would have to pay the face value to the Bank to get it issued but then they couldn't cancel it.
It's - for 6 months at least - essentially the same as cash which you hold (which is what I already suggested to you in u.l.m.)
There are basically just 3 options:
a. you have the money and the other person don't (eg cash in your sock drawer) b. you don't have the money and the other person does (eg a cheque on his account which he can stop - well, you could sue on the cheque but you could the same on a contract or whatever) c. neither of you have the money - eg a third party does (escrow) or you do a half-a-sixpence on the readies
For £250 it just ain't worth getting into charges on property or whatever. Come to think of it, it ain't worth more of my time: either you don't trust him for £250, or he trusts you with it, or you don't do this mysterious deal.
Well if you all want to get technical about it, there's no such thing as a "post-dated cheque" in the first place!
that's good enough for me. Thank you. I presume it must be payable from the bank rather than from the individual to be unstoppable.
No, there are other possibles.
NT
I don't see how that helps since you told us "the buyer/borrower has no money now with which to pay" so buying a bank cheque seems no easier than giving you the cash to hold. But so be it.
I presumed the buyer doesn't pay the amount on the cheque until it's cashed, or am I wrong there?
NT
You are wrong there.
Why should the bank trust the £250 will be paid i.d.c. after the cheque is cashed if you won't trust the person?
I really think you need to go away and re-read and think about the comments you've been given.
a bankers cheque is essentially cash that can only be used by the payee. You pay for it when issued.
There is no solution to the OPs problem. If he cannot guarantee transfer of value at a future date, whatever he does now is irrelevant A contract and post dated cheque will net you legal intent to pay and legal acknowledgement of debt, but its not worth court for 250 quid.
The only way to do this is the old fashioned pawnbrokers way. Take something you can sell for 250 quid off him and if he doesn't come back with the cash sell it.
End of.
As I read this, you're loaning, sending on approval, or hiring out something to somebody which is worth ?250. If they return this in good order, or decide not to buy then you'll return their ?250.
All the solutions suggested so far, both by yourself and others seem to assume that they have the ?250 to hand right now. If they don't have the ?250 right now, or can't borrow it then there's no person or institution that can guarantee that they'll be able to pay you in future.
What must be puzzling most people I'd have thought, over and above the precise nature of this transaction ( which seems more suited to a puzzle page than anything else IMO) is why if you're loaning something to somebody else worth ?250, they're not willing to pay you ?250 cash as a returnable deposit ?
The only alternative I can think of is you're hiring the use of something - a hire car, a machine, or a service to be performed at some future date as yet unspecified. But then why would they need to pay you ?250 in advance ?
michael adams
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A banker's draft is basically like cash. You need the pay the bank up front to get one. It will cost the value of the draft plus an admin fee. The bank will sit on the money until its cashed.
You can return the draft to the bank for a refund (less more fees no doubt). If a draft is lost and you wish to reclaim the money you will have to go though a long process of proof, and then wait *many years* before you can get any refund.
About the nearest I can think of is to make a pre-authorisation request on their credit card. It basically "reserves" a portion of the credit limit and establishes that the card issuer is prepared to pay. Don't think you can stretch that out to six months though...
om the bank rather than from the individual to be unstoppable.
shed, or am I wrong there?
the bank considers them creditworthy as they have income.
I know you do. I don't think the options are exhausted at this point. Time will tell whether that occurs or not.
NT
yes, though it's worth more than £250. But I'm willing to live with £250 of deposit.
banks do just that with credit cards.
profit. They don't have the £250 at the moment.
Yes, I need at least the option to collect money at some point to over the risk in lending them the equipment. It could be ruined or vanish. Normally people put down money, but on this occasion they don't have it but are neve rtheless creditworthy.
NT
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