Lockbox

Last Updated: Jun 7, 2019

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A lockbox is a specific post office box opened by a bank's treasury management area to provide expedited processing of payments received by account debtors. Under this service, mail time is expedited as the bank's cash management area picks up the checks and remittances several times throughout the day. These items are then deposited directly and the customer is informed, typically through an on-line portal. Copies of the checks received are made available as well as the remittance advices sent through the lockbox. A lockbox is critical when lending against accounts receivable in a full dominion environment.