Definition for : Lockbox system
GLOSSARY LETTER
The lockbox system is a Cash management technique. Under a lockbox system, the creditor asks its debtors to send their payments directly to a post office box that is emptied regularly by the creditor's bank. The funds are immediately paid into the banking system, without first being processed by the creditor's accounting department.
(See Chapters 47 of the Vernimmen)
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