5 Reasons Why Your Company Needs a Lockbox
In a world where people pay their bills in a variety of ways, we need options to receive money safely and efficiently. If your customers still pay the majority of their bills by check, a lockbox is the best way to receive payments for your business.
What is a lockbox? A lockbox is a PO Box that your bank empties and deposits the checks into your account for you, which streamlines the process. Banks will then scan the documents, so you can have virtual records of each transaction.
Lockboxes come in two types: retail and wholesale.
- Retail lockboxes are typically used for businesses that receive a high volume of checks in lower amounts. Doctors’ offices, for example, often receive many mailed checks in various amounts, depending on the patients’ copays.
- Wholesale lockboxes are typically used for a business who does high-volume, high-value check transactions. These are usually business-to-business transactions.
You might be thinking, “What’s the big deal? I can just remote deposit the checks or go to the ATM if I need to.”
While that’s true, typically remote deposits have daily and/or monthly limits. If your business receives too many checks in a given month, you may be forced to make a visit to the bank anyway. Lockboxes do all the hard work for you!
But that’s not all. Consider these added benefits:
Quick payment - When a company uses a lockbox, it shortens the time between receiving, mail, processing, and then depositing each check. You no longer have to make time to get to the bank.
Frequency - A lockbox allows for your checks to be processed several times a day depending on the lockbox plan you choose.
Focus on what you do best. - You run a business; you’re busy. It’s time to focus on what you do best instead of wasting time managing your deposits. Instead of visits to the bank, you can focus your energy on building your business!
Checks and Balances - When a bank deposits your checks, they scan them into the system and note the deposit amount and the name of the client who sent it. This allows you to easily audit your balance sheets.
Faster Cash Flow - Since banks can quickly and efficiently deposit your checks, your cash flow will be available almost immediately.
If you’d like to learn more about lockboxes, contact us and we’d be happy to discuss if it's the right choice for your Kentucky-owned business.