Call Us: (02) 906 6835

What do you mean by PDC or post-dated check?

You are here:

A post-dated check (PDC) is, as the term implies, a check you issue in advance to your payee, but the date indicated is some date in the future. PDC’s are a convenient way of paying for your dues in advance without actually releasing the amount until the date indicated on the checks.

That’s how PDC’s work. You can issue them today, but they cannot be encashed by the payee until the date indicated on them. This way, you don’t have to worry about getting charged with penalties for being late in making your payments. Or getting inconvenienced by having to physically or manually submit your payments on the day they fall due.

This is especially useful if you have recurring bills to pay on a specific date monthly or quarterly or any regular period. An example that is relevant to us here is the monthly rent.

PDC’s are part of our standard requirements from lessees. Whenever possible, we require post-dated checks for each monthly rent in the entire lease contract. These checks are to be provided prior to the start of the lease. This way, it will be convenient for the lessee to submit his payment on time, every month. For our part also, we don’t have to call the lessee each month to remind him about his rent or to personally see him to collect his payment.