How does a lockbox system in a business help a company save time and money?
Is it sort of a direct deposit? And without it it would take longer because the company would then have to go to the bank to deposit? Is it a third party transaction? Is the third party the bank?
Public Comments
- A lock box is usually established to accept payments several times a day. Sometimes hourly. Everything is done for you: mail received and opened, separated, payments received and deposited with proper credit given to account holders, and copies of all transactions forwarded to the company daily. The company just has to pay for the service each month. A company would usually have to have a lot of daily activity to offset the expense of a lock box.
