Lock Box System And Concentration Banking Is Method Of

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Lock box system and concentration banking is method of.

Lockbox system and concentration banking are the techniques of collection of debt. 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. The lockbox system undertakes the following. A banker is appointed by firm to control lock box.

Concentration banking usually requires that an organization keep all of its bank accounts with a single bank. A lockbox system is a technique of collection of debt where local post office boxes maintained by bank of firm are collected. A financial institution that is the primary bank of an organization or the bank where the organization does most of its transactions. Lockbox banking is a service provided by banks to companies for the receipt of payment from customers.