How has Check 21 enabled companies to change the way they manage and process their accounts receivables?
Since banks can now accept electronic check deposits from corporate clients, companies can streamline the handling of check deposits and eliminate the time and cost associated with physically transporting checks to the bank. These electronic files are converted by the bank into substitute checks that can be deposited and processed in place of the original checks. Why should a company be interested in remote deposit? For most companies, making check deposits at a bank is typically a time-consuming and expensive proposition. However, by using remote deposit, companies can realize benefits such as eliminating a trip to the bank each day or taking advantage of a later deposit deadline that may improve its cash flow. Also, by getting check deposits into the payment system more quickly, a company will be notified sooner of its return checks, potentially reducing its overall collection and credit risks. Some companies with offices or store locations that are geographically dispersed have had
