What is Lock Box Payment Services?
Lock Box Payment is a service provided by banks and finance companies to clients for the receipt of payment from customers (Account Debtors). Under the service, the payments made by customers are directed to a special post office box, rather than going to the company. The bank/finance company will then go to the box, retrieve the payments, process them and deposit the funds directly into the client’s bank account.
Factoring companies including ECapital also use a lockbox payment arrangement for Account Debtor payments. ECapital also offers 24-hour online report access to our clients as part of our A/R Management and Credit Protection Programs.