Lockbox banking is really a banking option that is adopted by the good number of medium and big scale businesses that have extensive operations and many customers. These banking options allow customers who may have accessed the goods and services of a business to transmit the instalments right to the bank and never on the business itself, through the mailbox. It is a banking option that’s only offered to commercial customers rather than retail customers as a result of amount of cash that is certainly generated and handled over.
Such a banking is very best for medium and huge scale businesses meaning which it relives these firms with the task of handling money, counting it, drawing up checks and then depositing it staying with you. As may be expected these is an intricate task that will need an important man-power to handle these payment in the timely and accurate manner. This is not always possible for large and medium scale businesses as there are the possibility of loss of money which could upset the accounts of the business. Thus with lockbox banking options an enterprise does not have to hire extra labor to manage its payment what is actually more is the fact that banks use automated machines that can process the instalments in the feasible manner.
Banks offering lockbox banking options have set up a system that allows them to get rid of the lockboxes at frequent time intervals through out the day. This means that major and medium-sized businesses tend not to notice a backlog of unprocessed payments in cash or as checks. Banks also employ the automated machines to process data and so develop a are convinced that is delivered into the account with the businesses. The reality that report s and copies of checks are delivered to the lenders helps to ensure that there’s sufficient proof transaction in the event that a dispute arises.
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