Lock-box system, Finance Basics

Lock-Box System

In a lock-box system, the customer sent the payments to a post office box. The post office box is emptied with the firm's bank at minimum once or twice all business day.  The bank releases the payment envelope, deposits the cheques in the firm's account and sent a deposit slip showing the payment received to the firm. This system decreases the customer's mailing instance and the time it obtains to process the cheques received.

Posted Date: 2/1/2013 2:43:33 AM | Location : United States







Related Discussions:- Lock-box system, Assignment Help, Ask Question on Lock-box system, Get Answer, Expert's Help, Lock-box system Discussions

Write discussion on Lock-box system
Your posts are moderated
Related Questions
Consider an economy with three dates {t=0, 1, 2}. A firm has assets in place that generate an output (profit) of either 40 in state L or 160 in state H at t=2. Bothe states equally

1-Suppose you deposit $ 5 000 in the bank. How much can you raise after 10 years when discount rate is 5% for the first four years and then rises to 7% annually? 2 -A used car co

Rights of Ordinary Shareholders A. Right to vote Choose BOD Purchase/Sales of assets B. Influence decisions as: Right to residual ass

What role do primary financial markets play in our economy? What role do secondary markets fill? Describe the relationship that exists between financial institutions and financial

1 st bank offers you a car loan at an annual interest rate of 10% compounded monthly. What effective annual interest rate is the bank charging you?  Solution - Calculate

how can I get?

Suggestion Regarding Credit Limit. Should It Be Approved Or Not, W, Finance

Government Budget Deficit If the Government spends much more than it gets in from tax revenue, it runs a budget deficit. This deficit should be covered or financed either via

Advantage and Disadvantage of Sole Proprietorship Advantage of Sole Proprietorship High supervision of employees Income motivate owner Sole trade mostly ski

Importance and Solution of Dividend Decisions Dividends decisions are integral part of a firm's strategic financing decision. It is hence a plan of action adopted by managemen