You probably already know about Worthington's Remote Deposit Capture - where you can scan your checks in to the bank right from your office computer. But for some customers, that may not be enough. That's when you look at Lockbox services.
Why Would You Use a Lockbox?
The main reason to consider lockbox services is speed and efficiency. Lockbox services get money into your bank account faster than you'd be able to do it yourself. Perhaps you could run to the bank every time you got a check, but you wouldn't be able to get much work done - especially if you get a lot of checks.
Lockboxes are located in places where the mail is delivered several times per day. Your offices probably only receive mail once each day. If a payment just misses delivery to your location, you'll have to wait one business day to get your hands on the payment. In contrast, lockboxes offer more opportunities to capture payments and make deposits to your account.
Perhaps most importantly, you reduce the amount of time it takes for money to hit your accounts. You have less outstanding float, that is, collected but not yet available money out there - customer payments get deposited and become available for use as quickly as possible.
Imaging and Lockboxes
Worthington National Bank offers image based lockbox services. Image based services scan everything that gets sent to your lockbox so that you can view it online. You can often see images from payments received on the same day they reached the lockbox.
As you might imagine, the ability to see the actual checks and other items that your customers send is priceless. You can respond to customer service inquiries, and you can resolve problems much more easily.
By using automation, we can make your accounts receivable easier to manage. Optical Character Recognition (OCR) programs literally "read" everything and store the output electronically. This allows you to slice and dice your remittance data and, scroll through lists of customer information. In addition, having computers do the tedious work means that you'll have less data entry errors. This frees your staff up to do better things.
Wholesale lockbox services allow you to streamline receivables. Wholesale lockboxes are best for organizations that process a small volume of payments. Because these payments may be high dollar items, getting the money in your system quickly is essential. A good lockbox service can help keep costs down while keeping collections as quick as possible.
How Wholesale Lockbox Works
Your customers or business partners send payments directly to your wholesale lockbox PO Box, which is a special Post Office box that bank representatives have access to. The bank collects payments and credits them to your account much more quickly than you could do on your own.
By getting those large payments into the bank quickly, you have more money to work with on a daily basis. This helps you minimize debt costs and keeps funds available for your business' needs.
Retail lockbox services help you process payments efficiently. Retail lockboxes are best for organizations that process a large volume of relatively small payments. While the dollar amounts may be small, the money adds up. Getting these funds into your system efficiently is essential.
How Retail Lockbox Works
Your customers or business partners send payments directly to your retail lockbox PO Box, which is a special Post Office box that bank representatives have access to. The bank collects payments and credits them to your account much more quickly than you could do on your own. They specialize in processing large volumes of mail, and they have technology that helps speed things along.
By having a retail lockbox service manage your incoming payments, you get money in the bank with more speed and efficiency. These services have worked out ways to keep errors at a minimum while still moving fast, and they automate much of the process.
How much does it cost?
It's a lot more affordable than you might think. When you consider the savings and increased funds availability you get when compared to doing this yourself, you can really come out ahead. Since each installation is customized, let's visit together and review what services suit your company best.
Chief Deposit Officer
Worthington National Bank
Please contact us for details.