Slow Economy Gives Boost to Check Cashing

Just about a year ago, A. Hunt Marckwald, of Quogue, saw an opportunity to make money despite the state of the economy — a Westhampton Beach-based check cashing service solely for blue collar businesses, including landscapers, contractors and painters.

The business, East End Liquidity Solutions, has taken off, Marckwald said, bringing in more clients than he expected to have in his first year.

Just through word-of-mouth, he said he has secured 80 clients.

"It is a niche businesses in this economy," he said. "There is a need for it."

In a nutshell, Marckwald's business cashes checks for businesses that are working one pay check to the next and can't wait the one to five business days for checks to clear through the bank.

"In the old days businesses, like landscapers, didn't have much overhead, but now they have high gasoline costs and are laying this money out," said Marckwald, who was in the real estate business before the market crashed.

For the service, Marckwald charges $3 per every $100 cashed. There is also a $40 bounced check fee, which Marckwald said is much less than the charges a business would incur if they draw on a bounced check through their bank.

"It could cost them hundreds of hundreds of dollars," Marckwald said.

All businesses are screened before they are accepted as clients and must provide documentation, including a valid New York State driver's license, he said.

Marckwald said he got the idea for the business, which does not cash personal checks or provide money wiring services, after reading an article in a newspaper about a similar business.

It was not an easy task to start the business — it took several months to obtain a license from the New York State Banking Department and he said he went to great lengths decorate the interior of his office to resemble a banking-atmosphere.

"We want our clients to feel comfortable," he said.

For more information on East End Liquidity Solutions, call 631-988-3801 or visit 64B Old Riverhead Road, Westhampton Beach.