Lockbox services enable businesses to simplify collecting and processing accounts receivable payments. Instead of mailing payments to the business itself, customers mail payments to a post office box that their bank can access. Image Lockbox takes this a step further with images and reports being uploaded to a secure site that the business can access.

How Image Lockbox Works

With Image Lockbox, a bank messenger picks up payments from a post office box and delivers them to the bank's operations facility early each business day. From there, payments are processed based on the business's customized specifications. Checks, documents, and even envelopes are scanned and indexed for digital accessibility. Checks are, of course, deposited into the bank account. This is done on the same business day they are received.

Why Image Lockbox is a Time-Saver

Businesses need as many ways to save time as possible these days with the pandemic throwing the world into chaos and many businesses having to reduce staff and cut costs. Increased productivity can be hard to come by. Image Lockbox can help with this because the bank does the work for you. You can eliminate extra time spent processing paper checks and documents that you receive from clients. If these are directed to the bank to process, you can focus your company's time and resources elsewhere, while resting assured that these important items are being well handled.

Businesses are also able to quickly access funds when the bank is processing them. Check and remittance document images can be viewed on the same day checks are deposited, which the bank also handles as they are received. Posting time for cash application is reduced.

Why Image Lockbox is a Money-Saver

Although you pay a fee for using Image Lockbox, it can actually lower your costs rather than add to them. It allows you to eliminate the extra time and expense of processing paper checks and documents you would have to deal with if they were mailed to your office rather than directly to the bank. Time is money, and the more time you are able to free up for yourself and/or your employees, the better that time can be spent in a way that helps to generate revenue, as opposed to spending this time dealing with something the bank can handle for you.

Image Lockbox is Comprehensive and Easy to Use

What can be easier than letting the bank handle your accounts receivable payments for you? You will receive daily imaging of all checks, invoices, and backup documentation to support payment posting and cash application, and all information is searchable, so it is quick and easy to sort and find key data. You can access and view an entire year of online images and data, and up to seven years of archived data.

The paperless nature of Image Lockbox reduces waste, and now more than ever, the ability to conduct business remotely is hugely beneficial, given the pandemic and social distancing precautions.

Image Lockbox Can Help Protect Your Business from Disaster

If your business ever faces a disaster, such as a fire or a flood, Image Lockbox will be able to keep your information and documents safe, since they are stored online and easily searchable. For the same reason, you don't have to worry about losing documents or having them stolen. The seven years of archived data is especially helpful in such a case.

Image Lockbox Can Improve Your Cash Flow

It's easy to see how Image Lockbox is good for a business's cash flow. Daily imaging of checks, invoices, and backup documentation expedites the entire collection process, and you have access to funds on the same day. The time you are able to free up with Image Lockbox is time that can be spent sending follow-ups on late payments, running cash flow analysis, etc.

Ultimately, Image Lockbox is all about efficiency, and businesses thrive the more efficiently they operate. With times as uncertain as they are, no business can afford to be inefficient, and services like this can make a major difference in improving operations, cash flow, and productivity.

 

The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank. Nevada State Bank is a division of Zions Bancorporation, N.A. Member FDIC