Are the checks signed by the other business and endorsed back to the contractor?
If not - how are you negotiating them?
If they are - how do you know that the signatures are legitimate and authorized?
It is a lose/lose situation and something that the bank may eventually be on the hook for.
It is also a great way to create income tax fraud. The contractor shows these as expenses on his books and walks with the cash. Pretty slick - right?
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