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What is a Voided Check? How to Void a Check + Voided Check Examples


What Is a Voided Check?

A voided check is an official check from your banking institution that has had the word “VOID” written clearly (and in large print) all the way across the front of the check.

The process of writing VOID across your check essentially “disables” the check so that it cannot be used as legal tender any longer, but it still allows the electronic banking information contained within to be used by individuals or organizations looking to connect to your bank account.

The process of figuring out how to void the check by writing VOID clearly across it guarantees that anyone the check might be handed to cannot simply fill in the blanks and draw money from your account.

Any bank teller (even those working the first hour of their first shift) will understand that the check itself is anything but legitimate and you will have nothing to worry about.

Next, we’ll break down simple instructions for voiding a check properly.

How to Void a Check


Voiding a check is straightforward, but you’ll want to make sure to do it right to make sure that the check cannot be used:

1. Pull out a blank check from your checkbook

Make sure to note its official check number in your ledger as you do. Make a note of “VOID check” to make sure you know why that check is skipped when you’re balancing your checkbook.

2. Grab a permanent marker

Make sure that you’re using a permanent marker if possible. However, a pen can work if you don’t have one on hand. Just make sure that it’s in blue or black ink. 

3. Write in big, bold, clear print VOID on the face of the check

Write the word “VOID” in large letters, big enough to cover most of the face of the check (except for the banking details we mentioned above).

It can help to add some spacing between each letter (V O I D) to ensure you can cover the entire check.

4. Leave the checking account and routing number area clear

Just remember to leave the bottom of the check where your checking account and routing number are listed legible, otherwise it won’t be much good as a voided check. 

Also, you don’t need to bother endorsing the check as you won’t actually be using it. 

What if you don’t have a spare check?

If you don’t have a spare blank check and still need to figure out how to get a voided check, there are a couple of options as well.

You can ask your bank to draw you up a “counter check”, a special type of check that can be officially voided by the bank but still includes your important account information. You might also ask the business or organization requesting a voided check if they would accept a deposit slip that has been voided as well.

If both of these options fail you might want to ask the bank to record your pertinent account information and then notarize the letter, making sure it’s printed on their official letterhead. That’s almost always a solid approach, though circumstances will rarely dictate you have to go down that road.

At the end of the day, you shouldn’t have any trouble at all getting your hands on a voided check– and taking advantage of all the benefits it offers– with the help of this quick guide!

Voided Check Example

Here’s a quick voided check example to understand how VOID should be written across the check

What is a voided check? How to void a check example

Most importantly, make sure you cover the “Pay to the order of” section.

Generally, if “VOID” is written across a check, no matter how or where, it will be recognized as a voided check.

However, you don’t want to take any kind of chances when it comes to your banking information.

So, be thorough and write it large and wide across the majority of the check.

Why Would I Need a Voided Check? 4 Reasons to Use Voided Checks


There are dozens of different reasons why you may need to void a check, such as applying for an unsecured business loanor setting up direct deposit with your employer.

The most purpose in pretty much every case is to provide critical banking information to an individual or an organization so they can establish a direct link to that account. 

This can be because you are looking to make an ACH or Wire payment to someone’s account or to receive an ACH or wire into your bank account.

Every check (official check, anyway) includes a couple of key pieces of data that can be used by individuals and organizations to send or request money directly from your account.

This information includes:

  • The actual bank/credit union that the account is hosted at
  • The bank account number for this specific account and
  • The code that identifies your bank electronically (most commonly referred to as the routing number or ABA number)
  • The name of the owner of the account commonly referred to as account name
  • Check Number
  • The address associated with the account (not all the time)

The name of your banking institution is going to be printed prominently at the top left-hand corner of your check. At the very left-hand bottom of the front of your check is going to be your routing number, your account number, and the official check series number (in that order).

This is the information that today’s electronic banking services need to set up an electronic transfer between two different entities.

1. Direct deposit

Setting up direct deposit for your paychecks (or for one-off payments, if you are a freelancer for example) is incredibly simple with the help of a check that has been voided out.

All you have to do is provide this check to the department responsible for processing payments and they’ll be able to input the information we highlighted above into their system and you’ll get your money a lot faster than you would have traditionally.

You also don’t have to worry about losing a paper check, having a paper check expire and going through the process of requesting another, or any of the other hassle and headache that traditional paper paychecks inevitably bring to the table. The money also becomes immediately available as soon as it has been deposited directly into your account which is another huge bonus.

2. Automate bill payments

Another advantage of utilizing a voided check is to set up automated bill pay services, streamlining your budget significantly and taking a lot of stress and pressure off of your shoulders trying to remember if and when you have to pay bills every month.

Never again do you have to worry about finding your checkbook several times a month and firing off payment through the mail (hoping it gets there on time).

Nor do you have to worry about logging onto online bill payment services after you set up automatic electronic transfers, either.

Think of this as a reverse direct deposit. After you have used a voided check to set up automatic bill pay, you can schedule these bills to be paid instantly when they are due and on a recurring basis – essentially a set it and forget style payment system.

3. Mistakes made with a check

Anyone that has a checkbook is made at least a mistake or two filling out the important information when writing a check, but too many people don’t realize that they need to “secure” that check by voiding it out.

Without going through the process of voiding the check folks run the risk of someone getting their hands on the incomplete check, filling the rest of the details out themselves (and usually making the check out to themselves), and then emptying your account of your hard-earned money.

By voiding out your check that’s never going to happen.

4. To obtain funding for your business

As a business owner, you’ll need a voided check during the funding process so that your lender knows where to deposit your funds.

They also use the information to verify that your account matches where the funds are being sent to ensure they’re going to you.

What happens when a check is voided?

So, what happens when a check is voided?

Once you’ve voided a check, it’s essentially disabled and cannot be used any longer.

It doesn’t matter if someone else picks that check up and tries to write over it.

Provided you’ve written “VOID” largely and clearly across the entire check, it can no longer be used.

You can still use that check to grab or provide your bank routing and account number as those numbers are tied to your bank account and not individual checks, however.

Get the Cash Your Business Needs with Excel Capital

Acquiring business funding can be difficult if you don’t have perfect credit, tons of collateral, or established connections.

Adequate business funding shouldn’t be out of reach for new business owners, which is why at Excel Capital we’ve made it easier than ever to acquire the funding your business needs:

  • Without perfect credit
  • Or stringent collateral requirements

We have options to fit every need and qualification level, so you can get the cash your business needs to keep surging forward– or get through a rough patch.

Apply today:

Get the capital your business needs. Apply with Excel Capital today: Apply Now

What Is a Bridge Loan? + How to Get One


What Is a Bridge Loan?

A bridge loan is short-term, loan that helps “bridge the gap” until a longer-term funding method can be secured by the borrowing party. 

A bridge loan– sometimes referred to as a swing loan, bridging loan, bridge financing, or gap financing– has several unique applications, especially in terms of real estate where a bridge loan can allow you to purchase a new property before selling your current one. 

A bridge loan has several unique applications, especially in terms of real estate where a bridge loan can allow you to purchase a new property before selling your current one. 

For that reason, bridge loans are often secured using an existing property. 

Table of contents

  1. How do bridge loans work?
  2. Bridge loan examples: What can you use a bridge loan for?
  3. Pros and cons of bridge loans
  4. Is a bridge loan for you?
  5. Frequently asked questions

Get the capital your home-based business needs. Apply for an unsecured business line of credit with Excel Capital: Apply Now

How Do Bridge Loans Work? 


Bridge loans work differently depending on the reason why they’re being used. 

However, in terms of real estate– where they’re commonly used to purchase a new home before selling your old property– they work like this:

  • You, the borrower decide you want to purchase a new property before selling your current home
  • You apply and are approved for a bridge loan
  • You then use the equity in your home as collateral for the down payment on the new home loan
  • Finally, you begin paying back the bridge loan

Keep in mind that it’s possible you’ll need to begin paying back the bridge loan before the old property has sold.

That can put added pressure on you as you’ve just taken up a new mortgage (depending on whether that new mortgage is more or less expensive than the old one). 

Bridge loan vs. Traditional loan

Often, approval for a bridge loan works a bit differently than a traditional loan. 

How are they different? Here are the main ways a bridge loan tends to be different from a traditional bank loan:

  • They often have faster approval time and funding speed
  • They also typically have higher interest rates
  • Terms tend to be shorter than traditional loans, from a few months to one year in most cases
  • Approval factors tend to be different than traditional loans as well, with lower FICO requirements and debt-to-income ratio guidelines. 

Bridge Loan Examples: What Can You Use a Bridge Loan For?

As we talked about earlier, bridge loans are common in real estate as they serve as an effective way to close what can be an awkward gap between waiting for a property to sell and buying the next.

With a real estate bridge loan, the property owner can move forward with purchasing that new loan without having to wait for the old property to sell, giving them added flexibility especially if they think the property may take a while to sell. 

The two mortgages are then combined with the loan itself covering 80% of the combined value of both properties. 

However, this isn’t the only way that bridge loans are used.

Bridge loans are used commonly by both large businesses and individuals to bridge the gap between the time it takes for them to obtain funding when purchasing things such as:

  • A new facility for a product-based business
  • A larger office
  • An investment property for the purpose of real estate investing
  • Or even the materials needed for a large construction job

Pros and Cons of Bridge Loans


While bridge loans have several unique qualities, there are also disadvantages that make them great for some in certain situations and not in others.

Here are the pros and cons of bridge loans:

Pros of Bridge Loans:

Pro: Flexibility to bridge the gap between important purchases

The primary benefit of bridge loans, the flexibility you gain by being able to bridge the gap between a sale or more secure funding for a large property or equipment purchase isn’t a small thing at all. 

The ability to buy a new home before you sell your home you’re currently living in is a big benefit that many find worth the higher interest rates. 

Pro: Might skip payments

Depending on various circumstances, by using a bridge loan to purchase a new property before your old one sells, you can often skip several mortgage payments in the process.

While this might sound like a small plus, considering that could be all or most of the time you need to get the sale, that can often be the perfect reprieve to manage the challenge of handling both mortgages while waiting for that old property to sell. 

Cons of Bridge Loans:

Con: High interest rates

Bridge loans typically have higher interest rates than home equity loans, typically about 2% higher than the average 30-year fixed-rate mortgage, making them more expensive in the short term. 

Con: Handling two mortgages at once can be stressful

While a bridge loan rolls both mortgages up into one, you’re still handling the two simultaneously, which can create added stress while you’re looking for a buyer for the old property. 

Is a bridge loan for you?

Whether a bridge loan is the funding tool you need depends on what you need funding for and your timeline.

If you’re looking to make a new real estate purchase and you’re on a short timeline, or it will take time to sell, a bridge loan might be a good option.

If you need to make a large equipment purchase now but securing the funding will take time, a bridge loan could be exactly what you need to get that critical piece of large-scale equipment in place now so that you don’t skip a beat. 

However, it’s also important to know that many other funding options are available to you, so take the time to consider your options and make the choice that best fits your needs. 

Apply for a Bridge Loan with Excel Capital

If you’re in need of capital fast and can’t qualify for traditional financing due to strict credit requirements or you simply need funding faster than a traditional institution can provide, apply with Excel Capital.

Depending on which funding option you choose, you could be approved and funded in as little as 24-48 hours.

Get started and see what you can be approved for:

Get the capital your business needs fast. Apply for a bridge loan with Excel Capital: Apply Now

Frequently Asked Questions

What does a bridge loan cost?

In most cases, bridge loan interest rates range from 8-10%, with closing costs from 1.5-3% depending on your creditworthiness, debt-to-income ratio, and other qualifying factors. 

How can a bridge loan help my business?

A bridge loan is useful if you’re in need of making a fast purchase for something like real estate, especially when the market is up and your window to take action is small.