UK clients paying euro damage cheques

J

joanna99

Guest
Hi all,

I am organising weddings in France and things are going well so far but I have come across a problem that I can't seem to solve.
My clients pay the suppliers directly for most things without any issues
However, when hiring furniture, marquees etc the hire companies demand a EURO cheque damages deposit ( can be up to 5000€!)which they only cash if there is loss or damage. My UK clients do not have Euro cheques so then it falls to me to pay this for them...obviously there is NO way I want to do this!! I have considered taking my own sterling 'holding cheques' but have been advised that whilst French cheques are pretty hard to stop, a sterling cheque could easily be blocked or recalled. If the clients transfer the amount I am paying for them into my account to be returned to them after the wedding, then surely this becomes part of my earnings and then has to be declared?
I cannot see a simple solution so just hope someone kind may be able to suggest one? Whilst on the subject, can anyone confirm whether French banks will accept euro cheques from other euro countries, ie Holland, Ireland.

Kind regards,
Joanna
 
"If the clients transfer the amount I am paying for them into my account to be returned to them after the wedding, then surely this becomes part of my earnings and then has to be declared?"

I dont see why it would be part of your earnings --- I'd hold it on the balance sheet only -- however if they were going to do this you might as well ask them for a Euro bank draft.

I cannot see your customers agreeing though as the cash is effectively gone from them if the do this (until you refund it) -- with an uncashed cheque they can continuue to use the funds.
 
Any bank will accept any cheque, more or less, so long as it is made out to the right person and being lodged to the right account.

However, clearing a cheque from a non-national bank can take weeks - even Euro area.
 
Do you have facilities for taking credit card payments? Take a hold on a credit card to the same value as you need to put on the cheque.
 
Thanks for the advice. Yes I can see that clients don't want to actually have the money taken out of their account but an uncashed sterling cheque just won't be secure enough for me!
I will look into credit card 'holds' or what about the bankers guarentees that people use when selling their homes?

Daisy, do you think any european cheque ( apart form sterling) could be sent to the suppliers for their damages cheque then? ie from ireland or holland etc?
 
Just to update, the French supplier company replied by email today saying they'll accept an English cheque...so do they mean in sterling?? Can they really cash it if its in sterling? So confusing!!
 
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