Lock Box System And Concentration Banking Is Method Of

The local post.

Lock box system and concentration banking is method of.

Under the service the payments made by customers are directed to a special post office box. A financial institution that is the primary bank of an organization or the bank where the organization does most of its transactions. Several organizations use multiple banks. A banker is appointed by firm to control lock box.

A lockbox system is a technique of collection of debt where local post office boxes maintained by bank of firm are collected. Concentration banking is the practice of shifting the funds in a set of bank accounts into an investment account from which the funds can be more efficiently invested. Concentration banking usually requires that an organization keep all of its bank accounts with a single bank. In other words a firm has its operations in several parts of the country and in order to ease the complexity of handling multiple bank accounts at different locations the firm may opt for a concentration banking service whereby all the funds from different regional banks gets forwarded to a single bank account called as a concentration account.