Lock Box System And Concentration Banking Is Method Of

Under the service the payments made by customers are directed to a special post office box.

Lock box system and concentration banking is method of.

The local post. A banker is appointed by firm to control lock box. Lockbox system and concentration banking are the techniques of collection of debt. In other words a firm has its operations in several parts of the country and in order to ease the complexity of handling multiple bank accounts at different locations the firm may opt for a concentration banking service whereby all the funds from different regional banks gets forwarded to a single bank account called as a concentration account.

A lockbox system is a technique of collection of debt where local post office boxes maintained by bank of firm are collected. Lockbox banking is a service provided by banks to companies for the receipt of payment from customers. A financial institution that is the primary bank of an organization or the bank where the organization does most of its transactions. The lockbox system undertakes the following.