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Lockbox Services

If your company receives its payments primarily through mailed checks and you need a more efficient way of processing and depositing your receivables, Lockbox services are an option you should consider.

How It Works

Lockbox basically amounts to outsourcing the function of depositing accounts receivable checks. Pinnacle establishes a unique post office box address for each Lockbox client. You include your unique P O Box address for remittance of invoices mailed. A Pinnacle associate checks your company's P O Box every banking day, opens envelopes, and prepares checks for deposit. We then return to you copies of the checks and all other contents from the envelope.

Control

A Lockbox service enhances internal control for a company. Since the bank makes the deposits, you accomplish segregation of duties, deterrence of fraud, and documentation of audit trails. In addition, you no longer have to be concerned about not making your regular deposit when you are short of staff.

Time

Depositing checks creates three different types of float (the time between writing a check and having the funds available for use). Lockbox services can improve each of these:

Mail Float - The time it takes for a payment to travel through the U S postal system from your customer to you. A Lockbox address helps ensure consistent mail delivery, and separates payments from other mail.

Processing Float - The time it takes to open envelopes and prepare checks for deposit. Experienced Pinnacle associates are focused on these clerical tasks for you, with minimal interruptions.

Availability Float - The time it takes for a deposited check to clear through the Federal Reserve banking system to the check writer's institution and be considered available funds in your account. The sooner a check is deposited, the sooner you receive available funds.

Quick Access through Image Delivery

Images of all checks and documents are captured during the Lockbox process, with real time input keeping the images updated throughout the day. These images can be viewed via a secure connection to Pinnacle's web site. This means you can see images of checks and accompanying documents as they are processed. Image Delivery enables you to post payments to your accounts receivables system on the same day the amount is deposited into your bank account.

Questions?

For more information on our lockbox service, please send us a request through the Contact Us form or call one of our treasury management advisors.

Middle Tennessee (615) 743-6200
East Tennessee (865) 766-3031