Lockbox System
A lock box, a banking service that some large companies use for their
businesses, is a simple post office box that the company's bank sets up.
The company decides the types of correspondences such as payments to be
mailed to their lockbox by customers. The contents of the lockbox are
retrieved by a bank official and the bank then opens all of the
correspondence and deposits all payments received directly into the
company's account One benefit of the lockbox service to the commercial customer is that it
can maintain special mailboxes in different locations around the
country and a customer sends payment to the closest lockbox. The company
then authorizes a bank to check these mailboxes as often as is
reasonable, given the number of payments that will be received. Because
the bank is making the collection, the funds that have been received are
immediately deposited into the company’s account without first being
processed by the company’s accounting system, thereby speeding up cash
collection.
Lockbox System
Lockbox System
Lockbox System
Lockbox System
Lockbox System
Lockbox System
Lockbox System
Lockbox System
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