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Receivables Lockbox

Minimize the time and money spent on processing payments in-house.

Receivables Lockbox

Gain access to your business funds faster and improve cash flow with Cadence Bank's convenient Lockbox services.

Our Receivables Lockbox services enable companies to consolidate receivables and deposit information in one place while eliminating manual data entry. This significantly reduces errors and minimizes the time and money spent on processing payments in-house so you can focus resources on other important aspects of your business.

 

There are three kinds of receivables lockbox: Retail, Wholesale and Remote Lockbox.

 

What’s the difference between Retail and Wholesale Lockbox?

Retail Lockbox services are designed for payments made by retail consumers to businesses (such as utility bills). Our service utilizes sophisticated imaging technology to speed processing for large volume retail clients. We collect the remittances daily at frequent intervals and process on the same day they are received, up to the clients reporting deadline. We can process remittance volumes from 5,000-200,000 payments per month or even larger.

 

Whereas, Wholesale Lockbox services are designed for payments made by one business to another (B2B payments) and tend to be higher dollar amounts with less frequency. Due to the nature of these payments, our services will capture more details and data from your receivables to offer your company more robust reporting.

 

With Retail and Wholesale Lockbox, you send invoices to your customers just like you normally do. But instead of mailing checks and coupons to your office, customers will mail them to a special post office box printed on the invoice. Here’s how it works:

 

  1. Bill payer mails a check to a P.O. box
  2. The bank collects the checks from the P.O. box at frequent intervals throughout the day
  3. The envelopes’ contents are extracted on automated equipment
  4. The contents are fed through a high-speed scanner that captures images of the pieces, such as the remittances and checks, and converts and digitally stores account number, payment amount and other information from these images
  5. Data is transmitted electronically to the company, and the money is deposited into their accounts

 

Meanwhile, scanned images are made available for viewing by your staff via a secure online portal, and the data is configured and sent to you in a same-day posting file. Customizable output files that are compatible with your AR software may also be available to further streamline accounts receivable posting.

 

All check images are archived at the bank for up to seven years, categorized by unique client details so they’re easy to search. Proactive lockbox alerts can also be personalized to your requirements, so you receive timely notifications of all deposits.

 

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Benefits of Receivables Lockbox

With our Retail and Wholesale services, not only will you enjoy faster accounts receivable postings, improved productivity and enhanced customer service, you’ll also be able to:

 

  1. Lower internal processing costs
  2. Speed up collections
  3. Convert accounts receivables into cash more quickly
  4. Maintain a record for 7 years
  5. Reduce fraud and increase security

 

Any business that receives a significant number of checks in the mail and processes them with internal staff will benefit from Lockbox services. It's simply a far more efficient and secure solution for handling your accounts receivables.

 

To learn more about Receivables Lockbox and the services provided by Cadence Bank, download our free eBook, “How Does Lockbox for Account Receivables Work?” or view our infographic, “How Does Lockbox Banking Work?”

 

Contact us today to talk to one of our Treasury Management Officers. They can schedule a consultative review of your current bank setup and services, plan a tour of our lockbox facilities, and answer any questions you might have about our Receivables Lockbox solutions.

 

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