Do you receive payments in the mail each day and have a hard time keeping up with the processing? Does your deposit to the bank get delayed because your accounts receivables area is still posting the payments? Do you need improved funds availability to better manage your daily cash position? A lockbox service might work for your company to alleviate the pains of payment processing in your office. Collections are as important as disbursements, because they keep your company solvent, so managing them efficiently is key to a successful business. By outsourcing this collection function your staff will have more time to spend handling other issues, while deposits are credited to your account. Lockbox services at First American Bank are highly sophisticated and automated. We offer both Retail and Wholesale Lockbox services and process for customers of every size. By directing your payments to a special post office box, the bank assumes the duty of picking up, processing and depositing your receivables each day. In that process the bank collects any remittance information you need to post the payment to your receivables system. You receive a daily deposit report with the remitter information in order to update your receivables system promptly. The First American Bank's Retail lockbox begins by using specialized coupons instead of simple invoices. Your company creates the coupons with a scan line of the data you need to process that payment. This information is called the Optical Character Recognition or OCR line. First American Bank's IT department will program our system to read your coupon line to process the payments while collecting remittance data electronically. The deposit report from our Retail lockbox works in the same manner as the Wholesale service, with electronic delivery and import functionality. As an enhancement to the Retail Lockbox service, First American Bank can go one step further and collect your payments by converting received checks to ACH "Accounts Receivables' transactions which speed up the collection time. Generally speaking, the wholesale customer has a smaller volume of payments, but typically receives larger dollar amounts. For the deposit report, the remittance information may be keyed in from your invoice or from the check as it is data entered by one of our lockbox operators. All paper items received through the lockbox may be forwarded to your company, invoices, envelopes and even copies of checks if needed. Our customized service provides exactly what data your company demands to manage the receivables: no more, no less. The report is delivered to you daily. However, First American Bank also offers sophisticated alternatives to its wholesale customers. The daily deposit report may be delivered by paper or in an electronic format. If you have the ability to update your receivables system by importing a file, this service will save time and provide additional efficiencies. And copies of checks are difficult to manage and costly. So First American Bank is pleased to offer a month end CD-ROM of all deposited items processed through your lockbox.
BUSINESS BANKING
Lockbox Services
How it Works
Retail Lockbox
Wholesale Lockbox
