Lockbox Banking

Ever notice how a majority of our utility bills get sent to a P.O. box and not, like, an office building? (If not, go check last month’s electric bill—there’s a good chance they want payment checks remitted to a P.O. box.) So...what’s that about? Does a post office box offer some kind of added bill collecting convenience?

If the company in question is into lockbox banking, the answer to that question is "yes."

“Lockbox banking” happens when a company sets up a P.O. box for bill collection, and then that company’s bank goes to said P.O. box, collects the payments, and processes them. It’s a way to speed up the whole getting-paid process. Instead of sending Stan-the-intern to the P.O. box and having him load up all the paid bills in his Subaru and drive them to the bank to deposit, the bank just takes care of it for us. They send a daily courier to the box, then all the payments are processed all quick-like, and everything is logged and recorded. It’s fast, efficient, and, in some cases, can save the company in question quite a bit of money as well.