Why perform a lockbox study?
The scope and objective of the study must be determined at the outset of the project. Objectives include: • Determine if a lockbox is needed. A corporation receiving large dollar checks (averaging $1500 or more) by mail from its customers may benefit from a lockbox. • Evaluate the performance of current lockbox providers and reassign customers within the current lockbox system. Simply fine-tune the existing system without changing lockbox providers. • Perform a complete realignment of the lockbox system because the company’s remittance pattern has changed since the last lockbox study. Changes can occur due to sales growth (or contraction), changing customer base, acquisition or divestiture of subsidiaries, divisions or product lines, changes at the lockbox bank, in the postal system or in the check collection process. • Reduce the complexity of the company’s banking network. The company believes decreasing the number of banking relationships will lessen administrative costs.
