Definition Definition

Wholesale lockbox

The lockboxes is the most widely used device to speed up collections of cash. It is specials post box set up to intercept accounts receivable payments. It is a centralized collection service for corporate payments to reduce the delay in check clearing, or the float.

Two types of lockboxes are offered by banks: 

→ Wholesale lockboxes are used in processing a small number of large dollar checks.

→ Retail lockboxes are used for processing a large number of smaller checks 

Share it: CITE

Related Definitions