Lockbox plan
Lockbox plan is a cash management tool in which incoming checks for a firm are sent to post office boxes rather than to corporate headquarters. Several times a day, a local bank will collect the contents of the lockbox and deposit the checks into the company's local account.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Lockbox plan. A cash management tool in which incoming checks for a firm are sent to post office boxes rather than to corporate headquarters. Several times a day, a local bank will collect the contents of the lockbox and deposit the checks into the company's local account.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
