Lockbox


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Lockbox

A collection and processing service provided to firms by banks, which collect payments from a dedicated postal box to which the firm directs its customers to send payment to. The banks make several collections per day, process the payments immediately, and deposit the funds into the firm's bank account.

Lockbox

A service that a bank provides in which is processes payments for a company. The company directs its customers to send payments to a lockbox at the bank, whose employees then collect the payments and deposit them directly into the company's account. A lockbox reduces time between the receipt and processing of payments, which can be beneficial for the company using the service. On the other hand, it opens the possibility of fraud by bank employees, who could theoretically steal the payments by taking the funds from the payments and not depositing them.

lockbox

(1) A special box placed on the door of homes listed for sale, with a key to the property inside the box.The box is accessed via a code or a key,available only to licensed real estate agents.

(2) An arrangement whereby customers of a business send their payments to a PO box which is actually controlled by the business's lender rather than the business.The lender takes all receipts, pays itself any loan payments and fees,and then remits the balance to the business.

References in periodicals archive ?
The lockboxes are still there, but the demand for these personal depositories has decreased significantly through the years.
To adopt either plan, districts have to find a way to pay for training, purchase firearms and ammunition and, in some cases, a lockbox.
That privacy problem is compounded by the property lockbox feature.
Among the models, wire transfers and the use of the ACH were both measured as distributions and collections while the lockbox, a collection method, was also included.
Ron Wyden of Oregon told me ruefully that on Thursday, "Alexander put in a lockbox information that he's told the public he doesn't have.
Although the safe box and lockbox were similar in every way (other than access to deposits), the lockbox users were much slower to start depositing.
The lockbox holds a key for campground members to get to the pool deck, which is gated to prevent children from unsupervised swimming.
lockbox program on a global scale," says the company's CFO Kevin Knapp.
Given the slowdown in delivery, some companies may add lockbox locations, according to Litton.
Traditional lockbox services utilize a post office box for payment receipt, which is then deposited into an account owned by the provider.
Henry Schein is "certainly among our most successful lockbox users," says Alan Evanish, senior receivables product manager at BNY Mellon Treasury Services.
Those experiences, along with conversations with brokers outside New York, led him to a new line of work: lockboxes. In September, Bass launched Controlled Access Systems, which aims to provide lockbox technology to New York City real estate firms.