Lock Box System And Concentration Banking Is Method Of

Several organizations use multiple banks.

Lock box system and concentration banking is method of.

A lockbox system is a technique of collection of debt where local post office boxes maintained by bank of firm are collected. Concentration banking usually requires that an organization keep all of its bank accounts with a single bank. A banker is appointed by firm to control lock box. 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.

Lockbox system and concentration banking are the techniques of collection of debt. Lockbox banking is a service provided by banks to companies for the receipt of payment from customers. The local post. The lockbox system undertakes the following.