What Is a Business Day in the U.S. and Internationally?
We hear that official work is conducted on business days or our package will be delivered in 4 business days. But every day is not a business day and this article thoroughly explains the concept of business days.
What is a Business Day?
The business day means a well-known unit of time measure that refers to any day on which business operations and work are being conducted. In countries in the west, time from Monday to Friday between 9 a.m. to 5 p.m. (according to the local timeline) is usually considered to be a business day. This period excludes weekends and holidays, be it from the company or any festival. In the securities industry, a business day is said to be any day on which the financial market is open for trading and conducting business exchanges.
According to a thumb rule, there are said to be around 252 trading days in one year in the United States of America.]
Understanding Business Days
People not just in India or the West but all around the world face this issue of keeping in check the business days when they are submitting a check that needs to be clear from the side of the bank. Usually, depending upon the size of the check ( the amount of money that has been written) and the location from where the issuer issued the check affect the time that it takes to clear a check. It can take around two or more business days to clear a check, and an important thing that should be remembered by the consumer is that these 'two or more days don't include weekends and public holidays. Due to the time of the weekend or a public holiday, it can take more time to clear a check, and a depositor might have to wait longer to access those funds.
When a consumer or a company is conducting an international transaction, they need to be well aware of the business days that are followed in the particular country, as the business days vary.
Now, one might think that the business days are Monday to Friday globally, so why might one need to check the workweeks first while doing international transactions even though there is a basic rule for 40 hours per week, there is 3nough variation in other countries to make it necessary for consumers to be clear about the working days. Let us understand it with an example: If a person is doing business with a country in the Middle East, they should always keep in mind that they employ a Sunday to Thursday workweek, unlike ours from Monday to Friday. In some countries like Mexico, Columbia and India, the workweek is Monday to Saturday.
Business days are also utilized to convey messages about certain official work as when something will be taken care of it when the package will be delivered. For example, an online site might claim to deliver a certain package to be delivered in 6 business days, or mail may claim to be delivered within three business days. People always confuse three business days with three days, but that is not the case. Even if a package is said to be delivered in 3 business days, it might take 7 to 8 days to be delivered in case there is a weekend between the days.
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