Lockboxes

Small Business

In my previous posting, I wrote about Virtual PO Boxes. Another similar handy service I use for my own business is a lockbox, which is something my bank offers. It is basically a PO Box I use just for checks that are mailed to me, like for affiliate payments or invoice payments. I get over 100 checks like this a month, and with the lockbox my bank automatically deposits the checks to my bank account on a daily basis, and then sends me copy of each check for my records. Before I had a lockbox, I had to go to the bank several times a week to deposit checks (yes, I know, if having to go deposit money is my biggest problem in life, then I have it easy). Also, one time before I had the lockbox, I was out of town for 3 weeks, and checks piled up in mailbox but I had no cash in my bank account and I bounced some checks due to automated payments that were taken out while I was gone. So, having a lockbox solves this problem.

For larger companies, another advantage of a lockbox is that you start getting interest right away on the checks you receive. Instead of having checks sit in a pile on your desk for several days earning no interest until you make a trip to the bank to deposit them, you start getting interest on them right away with a lockbox.

Sometimes a company will enclose a letter or notice with the checks. My bank forwards those to me, so that is not a problem. The only downside to a lockbox is that it is expensive. I pay around $200/month, although there are probably ways to get one cheaper.

2 thoughts on “Lockboxes

  1. Out of curiosity, would you mind telling us what bank it is you use? I’ve never heard of that service with any of the banks I’ve used. Although, maybe I should ask that question after I have the problem you’ve described.

Leave a Reply

Your email address will not be published.