lock-box systemin a lock-box system the customer


Lock-Box System

In a lock-box system, the customer sent the payments to a post office box. The post office box is emptied with the firm's bank at minimum once or twice all business day.  The bank releases the payment envelope, deposits the cheques in the firm's account and sent a deposit slip showing the payment received to the firm. This system decreases the customer's mailing instance and the time it obtains to process the cheques received.

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Finance Basics: lock-box systemin a lock-box system the customer
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