Hauppauge company cashes in on a niche service

Michael Casalini has the distinction of being co-owner of the first commercial check-cashing business to be licensed by New York State. And his Hauppauge-based company, Bridge Capital Solutions, is the only commercial check-casher on the Island.

Check-cashing places bring to mind dimly lit holes-in-the-wall at the corner of rundown streets. Bridge Capital, however, "looks as clean as a doctor's office," Casalini said.

His unique contribution to Long Island's business community? His company immediately cashes checks that companies receive, relieving them of having to wait days for checks to clear at local banks. Bridge Capital charges a 3 percent fee for its services.

Steve Jensen, owner of Jet Ready Mix of Ronkonkoma, and a user of Bridge Capital's check-cashing services, said the ability to cash checks immediately allows him to pay vendors faster. He said the quick payments earn him discounts of as much as 15 percent from the vendors. "That takes care of the three percent" fee, Jensen said.

Casalini, once a building contractor, said many builders on the Island are so strapped for cash that they can't afford to wait for checks to clear at local banks.

In 2006, Bridge Capital became the first commercial check-cashing company to be licensed by the state banking department. It now has revenues of about $40 million, showing growth of about 15 percent annually, and some 500 customers.

In December, Manhattan-based investment company Praesidian Capital gave Bridge Capital $4 million in expansion funding.

But even Casalini acknowledges that "check cashing" carries a sometimes negative connotation. He has a term he prefers. His business, he says, is "revenue cycle management."