Is your business still depositing checks the old-fashioned way? If so, you’re not alone. Luckily, a payment solution can help expedite the process: FINSYNC Lockbox. 

With Lockbox enabled, your customers who desire to pay via check will see your Lockbox address on your invoices. The paper checks are routed directly to us. We convert them to ACH payments and match the payment to its invoice in your FINSYNC account. 

Lockbox eliminates the need for you to spend valuable time processing and reconciling your accounts. Whether you receive a few checks or hundreds of monthly payments, Lockbox allows you to receive this money quickly and easily without touching envelopes or manually making bank deposits.

Learn what Lockbox is, how it works, and the advantages it can bring to you and your organization.

What Is Lockbox?

Lockbox is traditionally a service offered by banks only to large companies that receive many check payments. Your business adopts the service, and the bank receives your checks at a PO box they control and then deposits them for you.

FINSYNC’s Lockbox is available to all subscribing businesses, regardless of size or check volume.

Simply enable FINSYNC’s Lockbox on your invoice settings, and you’ll see your remittance address (mailing address) has changed to an Atlanta PO box controlled by FINSYNC.

Besides being available to small businesses, FINSYNC is also unique in offering a Lockbox that is tied to your accounts receivable in your accounting software. When a check reaches your FINSYNC Lockbox, it’s automatically applied to the invoice (changing its status to paid), and the corresponding bank deposit is already matched to the invoice.

In other words, you no longer have to go through unidentified deposits on your bank statement and match them to invoices!

Companies today are always looking for ways to streamline their operations and reduce costs. One way to do this is by automating your payment process. This can save your organization considerable time and money and provide greater control over your accounts. 

At its core, Lockbox is a payment processing service that streamlines the accounts receivable process for businesses. 

How Lockbox Works

Businesses that use the FINSYNC Platform can take advantage of our company’s existing P.O. Box to receive payments. Your customers will first mail their checks to the address indicated on the invoice. The remittance documents are scanned, and the payment information is captured automatically. The amount is quickly transmitted to the business account, making it easy to keep track of incoming payments. The cost is only $1.00 per check deposited, scanned, and matched to a transaction on your behalf.

Here is a snapshot of the Lockbox process offered through FINSYNC.

lockbox graphic

Lockbox enables gig workers, digital nomads living abroad, and organizations with corporate clients in the US to get paid quickly. You must be a subscriber of FINSYNC’s Payments plan ($10/month) to use Lockbox. There is a $1 per check-deposited fee thereafter.

Advantages to Lockbox

There are several advantages to using FINSYNC’s Lockbox service to collect paper checks. We have listed a few ways this feature can help you stay ahead with your business’s financial management. 

Reduced processing time: When checks are sent directly to a business, they may need to be sorted and deposited manually, which can take time and potentially visits the bank. Checks deposited into a lockbox are typically processed faster, allowing business owners to skip the hassle of accepting paper checks.

Improve cash flow management: Since the funds are available more quickly, businesses can better manage their expenses and avoid bouncing checks or incurring late fees.

Fewer accounting errors: Having a third party handle check deposits can help to reduce accounting errors. 

Increase worker efficiency: Using a lockbox service can free up employees’ time that would otherwise be spent matching unidentified deposits or visiting the bank.

Conclusion

Despite the move towards digital invoices and payments, paper checks are still extremely popular in the United States. Some sources say 50% of all business-to-business transactions are still processed via check. Used by businesses of all sizes, Lockbox is a service offered by FINSYNC that allows customers to outsource the processing of their payments and can be a great way for businesses to streamline their payment processing and get paid faster.

 

Enable FINSYNC’s Lockbox, which is accessible for businesses of all sizes, to save you time for what matters the most.