Friday, 9 November 2018
As a business owner, cash flow is essential. But making daily check deposits can be a hassle. Lockbox banking simplifies the accounts receivable process.
At its most basic functionality, lockbox services simplify the accounts receivable process and get your checks into the bank faster. Lockbox processing also comes with some bells and whistles that can help you post payments faster and give you a long-term archive of check and remittance payment documents.
Banks offer lockbox services to help businesses streamline deposit processing and speed posting of remittances. To do this, the bank sets up a post office box, and you direct your customers to send their payments to the new address.
The bank retrieves the payments, keys in the information for the business' records, and deposits the funds into the business' account. Typically, you can choose to receive the check and remittances document images online or in a data transmission for posting purposes.
There are two basic types of lockbox services:
If your business doesn't fall under these two descriptions, don't worry because some banks can customize a lockbox solution to meet your needs.
Using lockbox services can add value to your business including some of the following, tangible benefits:
The content provided is for informational purposes only. Neither BBVA Compass, nor any of its affiliates, is providing legal, tax, or investment advice. You should consult your legal, tax, or financial advisor about your personal situation. Opinions expressed are those of the author(s) and do not necessarily represent the opinions of BBVA Compass or any of its affiliates. All accounts and credit are subject to approval, including credit approval. BBVA Compass is a trade name of Compass Bank, a member of the BBVA Group. Compass Bank is a Member FDIC.
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